Correlation Between Ashford Hospitality and Genesis Unicorn
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Genesis Unicorn 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 Genesis Unicorn 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 Genesis Unicorn Capital, you can compare the effects of market volatilities on Ashford Hospitality and Genesis Unicorn 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 Genesis Unicorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Genesis Unicorn.
Diversification Opportunities for Ashford Hospitality and Genesis Unicorn
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Genesis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Genesis Unicorn Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Unicorn Capital 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 Genesis Unicorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Unicorn Capital has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Genesis Unicorn go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Genesis Unicorn
If you would invest 555.00 in Ashford Hospitality Trust on August 24, 2024 and sell it today you would earn a total of 408.00 from holding Ashford Hospitality Trust or generate 73.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Genesis Unicorn Capital
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Genesis Unicorn Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashford Hospitality and Genesis Unicorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Genesis Unicorn
The main advantage of trading using opposite Ashford Hospitality and Genesis Unicorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Genesis Unicorn 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 Genesis Unicorn will offset losses from the drop in Genesis Unicorn'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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