Correlation Between BRAEMAR HOTELS and REGAL HOTEL
Can any of the company-specific risk be diversified away by investing in both BRAEMAR HOTELS and REGAL HOTEL 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 REGAL HOTEL 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 REGAL HOTEL INTL, you can compare the effects of market volatilities on BRAEMAR HOTELS and REGAL HOTEL 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 REGAL HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAEMAR HOTELS and REGAL HOTEL.
Diversification Opportunities for BRAEMAR HOTELS and REGAL HOTEL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BRAEMAR and REGAL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BRAEMAR HOTELS RES and REGAL HOTEL INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL HOTEL INTL 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 REGAL HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL HOTEL INTL has no effect on the direction of BRAEMAR HOTELS i.e., BRAEMAR HOTELS and REGAL HOTEL go up and down completely randomly.
Pair Corralation between BRAEMAR HOTELS and REGAL HOTEL
Assuming the 90 days horizon BRAEMAR HOTELS RES is expected to under-perform the REGAL HOTEL. In addition to that, BRAEMAR HOTELS is 1.11 times more volatile than REGAL HOTEL INTL. It trades about -0.19 of its total potential returns per unit of risk. REGAL HOTEL INTL is currently generating about 0.08 per unit of volatility. If you would invest 28.00 in REGAL HOTEL INTL on October 10, 2024 and sell it today you would earn a total of 1.00 from holding REGAL HOTEL INTL or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAEMAR HOTELS RES vs. REGAL HOTEL INTL
Performance |
| Timeline |
| BRAEMAR HOTELS RES |
| REGAL HOTEL INTL |
BRAEMAR HOTELS and REGAL HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAEMAR HOTELS and REGAL HOTEL
The main advantage of trading using opposite BRAEMAR HOTELS and REGAL HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAEMAR HOTELS position performs unexpectedly, REGAL HOTEL 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 REGAL HOTEL will offset losses from the drop in REGAL HOTEL's long position.| BRAEMAR HOTELS vs. PARKEN Sport Entertainment | BRAEMAR HOTELS vs. ARDAGH METAL PACDL 0001 | BRAEMAR HOTELS vs. Osisko Metals | BRAEMAR HOTELS vs. UPDATE SOFTWARE |
| REGAL HOTEL vs. Insteel Industries | REGAL HOTEL vs. Constellation Software | REGAL HOTEL vs. Unity Software | REGAL HOTEL vs. Magic Software Enterprises |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |