Correlation Between ALTAIR RES and Host Hotels
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and Host 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 ALTAIR RES and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALTAIR RES INC and Host Hotels Resorts, you can compare the effects of market volatilities on ALTAIR RES and Host 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 ALTAIR RES with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and Host Hotels.
Diversification Opportunities for ALTAIR RES and Host Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and Host is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts and ALTAIR RES 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 ALTAIR RES INC are associated (or correlated) with Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and Host Hotels go up and down completely randomly.
Pair Corralation between ALTAIR RES and Host Hotels
Assuming the 90 days trading horizon ALTAIR RES INC is expected to generate 33.65 times more return on investment than Host Hotels. However, ALTAIR RES is 33.65 times more volatile than Host Hotels Resorts. It trades about 0.07 of its potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.04 per unit of risk. If you would invest 0.75 in ALTAIR RES INC on September 20, 2024 and sell it today you would lose (0.70) from holding ALTAIR RES INC or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ALTAIR RES INC vs. Host Hotels Resorts
Performance |
| Timeline |
| ALTAIR RES INC |
| Host Hotels Resorts |
ALTAIR RES and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and Host Hotels
The main advantage of trading using opposite ALTAIR RES and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, Host 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| ALTAIR RES vs. G8 EDUCATION | ALTAIR RES vs. Laureate Education | ALTAIR RES vs. MI Homes | ALTAIR RES vs. Corporate Office Properties |
| Host Hotels vs. Silicon Motion Technology | Host Hotels vs. CARSALESCOM | Host Hotels vs. GRUPO CARSO A1 | Host Hotels vs. NISSAN CHEMICAL IND |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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