Correlation Between Ashford Hospitality and Breeze Holdings
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Breeze Holdings 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 Breeze Holdings 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 Breeze Holdings Acquisition, you can compare the effects of market volatilities on Ashford Hospitality and Breeze Holdings 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 Breeze Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Breeze Holdings.
Diversification Opportunities for Ashford Hospitality and Breeze Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Breeze is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu 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 Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Breeze Holdings go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Breeze Holdings
If you would invest 557.00 in Ashford Hospitality Trust on August 26, 2024 and sell it today you would earn a total of 369.00 from holding Ashford Hospitality Trust or generate 66.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Breeze Holdings Acquisition
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashford Hospitality and Breeze Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Breeze Holdings
The main advantage of trading using opposite Ashford Hospitality and Breeze Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Breeze Holdings 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 Breeze Holdings will offset losses from the drop in Breeze Holdings' long position.| Ashford Hospitality vs. Diamondrock Hospitality | Ashford Hospitality vs. Ryman Hospitality Properties | Ashford Hospitality vs. Pebblebrook Hotel Trust | Ashford Hospitality vs. Host Hotels Resorts |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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