Correlation Between Ashford Hospitality and One Liberty
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and One Liberty 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 Hospitality and One Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashford Hospitality Trust and One Liberty Properties, you can compare the effects of market volatilities on Ashford Hospitality and One Liberty 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 Hospitality with a short position of One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and One Liberty.
Diversification Opportunities for Ashford Hospitality and One Liberty
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and One is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty Properties and Ashford Hospitality 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 Hospitality Trust are associated (or correlated) with One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and One Liberty go up and down completely randomly.
Pair Corralation between Ashford Hospitality and One Liberty
Assuming the 90 days trading horizon Ashford Hospitality is expected to generate 49.99 times less return on investment than One Liberty. In addition to that, Ashford Hospitality is 1.7 times more volatile than One Liberty Properties. It trades about 0.0 of its total potential returns per unit of risk. One Liberty Properties is currently generating about 0.33 per unit of volatility. If you would invest 2,683 in One Liberty Properties on August 30, 2024 and sell it today you would earn a total of 332.00 from holding One Liberty Properties or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. One Liberty Properties
Performance |
| Timeline |
| Ashford Hospitality Trust |
| One Liberty Properties |
Ashford Hospitality and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and One Liberty
The main advantage of trading using opposite Ashford Hospitality and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.| Ashford Hospitality vs. Ashford Hospitality Trust | Ashford Hospitality vs. Braemar Hotels Resorts | Ashford Hospitality vs. Braemar Hotels Resorts | Ashford Hospitality vs. Aspen Digital |
| One Liberty vs. VICI Properties | One Liberty vs. Essential Properties Realty | One Liberty vs. Empire State Realty | One Liberty vs. American Assets Trust |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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