Correlation Between ASHFORD HOSPITTRUST and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both ASHFORD HOSPITTRUST and Corsair Gaming 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 Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASHFORD HOSPITTRUST and Corsair Gaming, you can compare the effects of market volatilities on ASHFORD HOSPITTRUST and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASHFORD HOSPITTRUST and Corsair Gaming.
Diversification Opportunities for ASHFORD HOSPITTRUST and Corsair Gaming
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASHFORD and Corsair is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ASHFORD HOSPITTRUST and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of ASHFORD HOSPITTRUST i.e., ASHFORD HOSPITTRUST and Corsair Gaming go up and down completely randomly.
Pair Corralation between ASHFORD HOSPITTRUST and Corsair Gaming
Assuming the 90 days horizon ASHFORD HOSPITTRUST is expected to under-perform the Corsair Gaming. In addition to that, ASHFORD HOSPITTRUST is 1.53 times more volatile than Corsair Gaming. It trades about -0.09 of its total potential returns per unit of risk. Corsair Gaming is currently generating about -0.03 per unit of volatility. If you would invest 1,420 in Corsair Gaming on October 19, 2024 and sell it today you would lose (680.00) from holding Corsair Gaming or give up 47.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.41% |
| Values | Daily Returns |
ASHFORD HOSPITTRUST vs. Corsair Gaming
Performance |
| Timeline |
| ASHFORD HOSPITTRUST |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Corsair Gaming |
ASHFORD HOSPITTRUST and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASHFORD HOSPITTRUST and Corsair Gaming
The main advantage of trading using opposite ASHFORD HOSPITTRUST and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASHFORD HOSPITTRUST position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.The idea behind ASHFORD HOSPITTRUST and Corsair Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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