Correlation Between Corsair Gaming and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Choice Hotels 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 Corsair Gaming and Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Choice Hotels International, you can compare the effects of market volatilities on Corsair Gaming and Choice Hotels 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 Corsair Gaming with a short position of Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Choice Hotels.
Diversification Opportunities for Corsair Gaming and Choice Hotels
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corsair and Choice is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Choice Hotels go up and down completely randomly.
Pair Corralation between Corsair Gaming and Choice Hotels
Assuming the 90 days horizon Corsair Gaming is expected to generate 2.16 times more return on investment than Choice Hotels. However, Corsair Gaming is 2.16 times more volatile than Choice Hotels International. It trades about 0.34 of its potential returns per unit of risk. Choice Hotels International is currently generating about 0.15 per unit of risk. If you would invest 680.00 in Corsair Gaming on November 1, 2024 and sell it today you would earn a total of 158.00 from holding Corsair Gaming or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Choice Hotels International
Performance |
| Timeline |
| Corsair Gaming |
| Choice Hotels Intern |
Corsair Gaming and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Choice Hotels
The main advantage of trading using opposite Corsair Gaming and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Choice Hotels 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| Corsair Gaming vs. Uber Technologies | Corsair Gaming vs. SWISS WATER DECAFFCOFFEE | Corsair Gaming vs. Playtech plc | Corsair Gaming vs. Minerals Technologies |
| Choice Hotels vs. Corsair Gaming | Choice Hotels vs. DELTA AIR LINES | Choice Hotels vs. Delta Air Lines | Choice Hotels vs. SOGECLAIR SA INH |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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