Correlation Between Ashford Hospitality and Argentum
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Argentum 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 Argentum 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 Argentum 47, you can compare the effects of market volatilities on Ashford Hospitality and Argentum 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 Argentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Argentum.
Diversification Opportunities for Ashford Hospitality and Argentum
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ashford and Argentum is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Argentum 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentum 47 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 Argentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentum 47 has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Argentum go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Argentum
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to under-perform the Argentum. But the stock apears to be less risky and, when comparing its historical volatility, Ashford Hospitality Trust is 2.55 times less risky than Argentum. The stock trades about -0.05 of its potential returns per unit of risk. The Argentum 47 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Argentum 47 on September 3, 2024 and sell it today you would lose (10.47) from holding Argentum 47 or give up 95.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Argentum 47
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Argentum 47 |
Ashford Hospitality and Argentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Argentum
The main advantage of trading using opposite Ashford Hospitality and Argentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Argentum 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 Argentum will offset losses from the drop in Argentum's long position.| Ashford Hospitality vs. Sotherly Hotels | Ashford Hospitality vs. Summit Hotel Properties | Ashford Hospitality vs. Host Hotels Resorts | Ashford Hospitality vs. Service Properties Trust |
| Argentum vs. Marsh McLennan Companies | Argentum vs. Arthur J Gallagher | Argentum vs. Willis Towers Watson | Argentum vs. Brown Brown |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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