Correlation Between Ashford Hospitality and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and GoGold Resources 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 GoGold Resources 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 GoGold Resources, you can compare the effects of market volatilities on Ashford Hospitality and GoGold Resources 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 GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and GoGold Resources.
Diversification Opportunities for Ashford Hospitality and GoGold Resources
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ashford and GoGold is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources 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 GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and GoGold Resources go up and down completely randomly.
Pair Corralation between Ashford Hospitality and GoGold Resources
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to generate 1.59 times more return on investment than GoGold Resources. However, Ashford Hospitality is 1.59 times more volatile than GoGold Resources. It trades about -0.01 of its potential returns per unit of risk. GoGold Resources is currently generating about -0.02 per unit of risk. If you would invest 1,170 in Ashford Hospitality Trust on September 1, 2024 and sell it today you would lose (275.00) from holding Ashford Hospitality Trust or give up 23.5% 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. GoGold Resources
Performance |
| Timeline |
| Ashford Hospitality Trust |
| GoGold Resources |
Ashford Hospitality and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and GoGold Resources
The main advantage of trading using opposite Ashford Hospitality and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Ashford Hospitality vs. Sotherly Hotels | Ashford Hospitality vs. Summit Hotel Properties | Ashford Hospitality vs. Diamondrock Hospitality | Ashford Hospitality vs. RLJ Lodging Trust |
| GoGold Resources vs. South32 Limited | GoGold Resources vs. NioCorp Developments Ltd | GoGold Resources vs. HUMANA INC | GoGold Resources vs. SCOR PK |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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