Correlation Between ASHFORD HOSPITTRUST and Xenia Hotels
Can any of the company-specific risk be diversified away by investing in both ASHFORD HOSPITTRUST and Xenia 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 ASHFORD HOSPITTRUST and Xenia Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASHFORD HOSPITTRUST and Xenia Hotels Resorts, you can compare the effects of market volatilities on ASHFORD HOSPITTRUST and Xenia 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 ASHFORD HOSPITTRUST with a short position of Xenia Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASHFORD HOSPITTRUST and Xenia Hotels.
Diversification Opportunities for ASHFORD HOSPITTRUST and Xenia Hotels
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASHFORD and Xenia is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ASHFORD HOSPITTRUST and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts and ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST are associated (or correlated) with Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of ASHFORD HOSPITTRUST i.e., ASHFORD HOSPITTRUST and Xenia Hotels go up and down completely randomly.
Pair Corralation between ASHFORD HOSPITTRUST and Xenia Hotels
If you would invest 1,330 in Xenia Hotels Resorts on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Xenia Hotels Resorts or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASHFORD HOSPITTRUST vs. Xenia Hotels Resorts
Performance |
| Timeline |
| ASHFORD HOSPITTRUST |
| Xenia Hotels Resorts |
ASHFORD HOSPITTRUST and Xenia Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASHFORD HOSPITTRUST and Xenia Hotels
The main advantage of trading using opposite ASHFORD HOSPITTRUST and Xenia Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASHFORD HOSPITTRUST position performs unexpectedly, Xenia 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 Xenia Hotels will offset losses from the drop in Xenia Hotels' long position.| ASHFORD HOSPITTRUST vs. British American Tobacco | ASHFORD HOSPITTRUST vs. CNVISION MEDIA | ASHFORD HOSPITTRUST vs. Zijin Mining Group | ASHFORD HOSPITTRUST vs. PARKEN Sport Entertainment |
| Xenia Hotels vs. Lamar Advertising | Xenia Hotels vs. PTT Global Chemical | Xenia Hotels vs. Mitsubishi Gas Chemical | Xenia Hotels vs. YATRA ONLINE DL 0001 |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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