Correlation Between Ashford Hospitality and Pacific Gas
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Pacific Gas 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 Pacific Gas 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 Pacific Gas and, you can compare the effects of market volatilities on Ashford Hospitality and Pacific Gas 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 Pacific Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Pacific Gas.
Diversification Opportunities for Ashford Hospitality and Pacific Gas
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ashford and Pacific is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Pacific Gas and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Gas 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 Pacific Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Gas has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Pacific Gas go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Pacific Gas
Assuming the 90 days trading horizon Ashford Hospitality Trust is expected to under-perform the Pacific Gas. In addition to that, Ashford Hospitality is 2.17 times more volatile than Pacific Gas and. It trades about -0.1 of its total potential returns per unit of risk. Pacific Gas and is currently generating about 0.0 per unit of volatility. If you would invest 1,970 in Pacific Gas and on September 12, 2024 and sell it today you would lose (11.00) from holding Pacific Gas and or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Pacific Gas and
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Pacific Gas |
Ashford Hospitality and Pacific Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Pacific Gas
The main advantage of trading using opposite Ashford Hospitality and Pacific Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Pacific Gas 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 Pacific Gas will offset losses from the drop in Pacific Gas' long position.| Ashford Hospitality vs. Ashford Hospitality Trust | Ashford Hospitality vs. Braemar Hotels Resorts | Ashford Hospitality vs. Braemar Hotels Resorts | Ashford Hospitality vs. Ashford Hospitality Trust |
| Pacific Gas vs. Pacific Gas and | Pacific Gas vs. Pacific Gas and | Pacific Gas vs. Pacific Gas and | Pacific Gas vs. Pacific Gas and |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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