Correlation Between BRAEMAR HOTELS and InterContinental
Can any of the company-specific risk be diversified away by investing in both BRAEMAR HOTELS and InterContinental at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BRAEMAR HOTELS and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAEMAR HOTELS RES and InterContinental Hotels Group, you can compare the effects of market volatilities on BRAEMAR HOTELS and InterContinental and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BRAEMAR HOTELS with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAEMAR HOTELS and InterContinental.
Diversification Opportunities for BRAEMAR HOTELS and InterContinental
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BRAEMAR and InterContinental is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BRAEMAR HOTELS RES and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and BRAEMAR HOTELS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BRAEMAR HOTELS RES are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of BRAEMAR HOTELS i.e., BRAEMAR HOTELS and InterContinental go up and down completely randomly.
Pair Corralation between BRAEMAR HOTELS and InterContinental
Assuming the 90 days horizon BRAEMAR HOTELS RES is expected to under-perform the InterContinental. In addition to that, BRAEMAR HOTELS is 2.21 times more volatile than InterContinental Hotels Group. It trades about -0.18 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.13 per unit of volatility. If you would invest 11,700 in InterContinental Hotels Group on October 25, 2024 and sell it today you would earn a total of 800.00 from holding InterContinental Hotels Group or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAEMAR HOTELS RES vs. InterContinental Hotels Group
Performance |
| Timeline |
| BRAEMAR HOTELS RES |
| InterContinental Hotels |
BRAEMAR HOTELS and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAEMAR HOTELS and InterContinental
The main advantage of trading using opposite BRAEMAR HOTELS and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAEMAR HOTELS position performs unexpectedly, InterContinental can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in InterContinental will offset losses from the drop in InterContinental's long position.| BRAEMAR HOTELS vs. Sotherly Hotels | BRAEMAR HOTELS vs. Superior Plus Corp | BRAEMAR HOTELS vs. Origin Agritech | BRAEMAR HOTELS vs. Identiv |
| InterContinental vs. Ribbon Communications | InterContinental vs. US FOODS HOLDING | InterContinental vs. TYSON FOODS A | InterContinental vs. Chengdu PUTIAN Telecommunications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |