Correlation Between Ashford Hospitality and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Accretion Acquisition 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 Accretion Acquisition 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on Ashford Hospitality and Accretion Acquisition 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Accretion Acquisition.
Diversification Opportunities for Ashford Hospitality and Accretion Acquisition
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Accretion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Accretion Acquisition
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to under-perform the Accretion Acquisition. In addition to that, Ashford Hospitality is 22.03 times more volatile than Accretion Acquisition Corp. It trades about -0.05 of its total potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.12 per unit of volatility. If you would invest 1,013 in Accretion Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 42.00 from holding Accretion Acquisition Corp or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashford Hospitality and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Accretion Acquisition
The main advantage of trading using opposite Ashford Hospitality and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Ashford Hospitality vs. Sotherly Hotels | Ashford Hospitality vs. Summit Hotel Properties | Ashford Hospitality vs. Diamondrock Hospitality | Ashford Hospitality vs. RLJ Lodging Trust |
| Accretion Acquisition vs. Skillful Craftsman Education | Accretion Acquisition vs. Peoples Educational Holdings | Accretion Acquisition vs. Relx PLC ADR | Accretion Acquisition vs. Ihuman Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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