Correlation Between Ashford Hospitality and PS Business
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Ashford Hospitality and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and PS Business.
Diversification Opportunities for Ashford Hospitality and PS Business
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ashford and PSBXP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and PS Business go up and down completely randomly.
Pair Corralation between Ashford Hospitality and PS Business
If you would invest 1,511 in Ashford Hospitality Trust on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Ashford Hospitality Trust or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. PS Business Parks
Performance |
| Timeline |
| Ashford Hospitality Trust |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashford Hospitality and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and PS Business
The main advantage of trading using opposite Ashford Hospitality and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' 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 |
| PS Business vs. Montauk Renewables | PS Business vs. Mesa Air Group | PS Business vs. JetBlue Airways Corp | PS Business vs. SkyWest |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |