Correlation Between American Hotel and Alpha One
Can any of the company-specific risk be diversified away by investing in both American Hotel and Alpha One 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 American Hotel and Alpha One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Hotel Income and Alpha One, you can compare the effects of market volatilities on American Hotel and Alpha One 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 American Hotel with a short position of Alpha One. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Hotel and Alpha One.
Diversification Opportunities for American Hotel and Alpha One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Hotel Income and Alpha One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha One and American Hotel 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 American Hotel Income are associated (or correlated) with Alpha One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha One has no effect on the direction of American Hotel i.e., American Hotel and Alpha One go up and down completely randomly.
Pair Corralation between American Hotel and Alpha One
If you would invest 238.00 in Alpha One on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Alpha One or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Hotel Income vs. Alpha One
Performance |
| Timeline |
| American Hotel Income |
| Alpha One |
American Hotel and Alpha One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Hotel and Alpha One
The main advantage of trading using opposite American Hotel and Alpha One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Hotel position performs unexpectedly, Alpha One 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 Alpha One will offset losses from the drop in Alpha One's long position.| American Hotel vs. Ashford Hospitality Trust | American Hotel vs. Ashford Hospitality Trust | American Hotel vs. Braemar Hotels Resorts | American Hotel vs. Braemar Hotels Resorts |
| Alpha One vs. MGIC Investment Corp | Alpha One vs. WEC Energy Group | Alpha One vs. Sun Life Financial | Alpha One vs. Antero Midstream Partners |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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