Correlation Between American Hotel and Southwestern
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By analyzing existing cross correlation between American Hotel Income and Southwestern Energy 495, you can compare the effects of market volatilities on American Hotel and Southwestern 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 Southwestern. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Hotel and Southwestern.
Diversification Opportunities for American Hotel and Southwestern
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Southwestern is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding American Hotel Income and Southwestern Energy 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 495 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 Southwestern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy 495 has no effect on the direction of American Hotel i.e., American Hotel and Southwestern go up and down completely randomly.
Pair Corralation between American Hotel and Southwestern
Assuming the 90 days horizon American Hotel Income is expected to generate 13.1 times more return on investment than Southwestern. However, American Hotel is 13.1 times more volatile than Southwestern Energy 495. It trades about 0.01 of its potential returns per unit of risk. Southwestern Energy 495 is currently generating about 0.02 per unit of risk. If you would invest 61.00 in American Hotel Income on November 3, 2024 and sell it today you would lose (10.00) from holding American Hotel Income or give up 16.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.7% |
| Values | Daily Returns |
American Hotel Income vs. Southwestern Energy 495
Performance |
| Timeline |
| American Hotel Income |
| Southwestern Energy 495 |
American Hotel and Southwestern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Hotel and Southwestern
The main advantage of trading using opposite American Hotel and Southwestern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Hotel position performs unexpectedly, Southwestern 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 Southwestern will offset losses from the drop in Southwestern'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 |
| Southwestern vs. AEP TEX INC | Southwestern vs. US BANK NATIONAL | Southwestern vs. LightPath Technologies | Southwestern vs. Reliance Global Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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