Correlation Between ALTAIR RES and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and Summit 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 ALTAIR RES and Summit Hotel 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 Summit Hotel Properties, you can compare the effects of market volatilities on ALTAIR RES and Summit 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 ALTAIR RES with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and Summit Hotel.
Diversification Opportunities for ALTAIR RES and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties 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 Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and Summit Hotel go up and down completely randomly.
Pair Corralation between ALTAIR RES and Summit Hotel
If you would invest 570.00 in Summit Hotel Properties on September 20, 2024 and sell it today you would earn a total of 80.00 from holding Summit Hotel Properties or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ALTAIR RES INC vs. Summit Hotel Properties
Performance |
| Timeline |
| ALTAIR RES INC |
| Summit Hotel Properties |
ALTAIR RES and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and Summit Hotel
The main advantage of trading using opposite ALTAIR RES and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, Summit 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| ALTAIR RES vs. G8 EDUCATION | ALTAIR RES vs. Laureate Education | ALTAIR RES vs. MI Homes | ALTAIR RES vs. Corporate Office Properties |
| Summit Hotel vs. Titan Machinery | Summit Hotel vs. Sterling Construction | Summit Hotel vs. Hanison Construction Holdings | Summit Hotel vs. Dairy Farm International |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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