Correlation Between QUEEN S and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both QUEEN S and Pebblebrook 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 QUEEN S and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QUEEN S ROAD and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on QUEEN S and Pebblebrook 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 QUEEN S with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUEEN S and Pebblebrook Hotel.
Diversification Opportunities for QUEEN S and Pebblebrook Hotel
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between QUEEN and Pebblebrook is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and QUEEN S 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 QUEEN S ROAD are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of QUEEN S i.e., QUEEN S and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between QUEEN S and Pebblebrook Hotel
Assuming the 90 days horizon QUEEN S ROAD is expected to generate 1.67 times more return on investment than Pebblebrook Hotel. However, QUEEN S is 1.67 times more volatile than Pebblebrook Hotel Trust. It trades about 0.03 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.0 per unit of risk. If you would invest 42.00 in QUEEN S ROAD on August 31, 2024 and sell it today you would earn a total of 7.00 from holding QUEEN S ROAD or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QUEEN S ROAD vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| QUEEN S ROAD |
| Pebblebrook Hotel Trust |
QUEEN S and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUEEN S and Pebblebrook Hotel
The main advantage of trading using opposite QUEEN S and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S position performs unexpectedly, Pebblebrook 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| QUEEN S vs. Ameriprise Financial | QUEEN S vs. Ares Management Corp | QUEEN S vs. Superior Plus Corp | QUEEN S vs. NMI Holdings |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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