Correlation Between Ashford Hospitality and I Minerals
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and I Minerals 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 I Minerals 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 I Minerals, you can compare the effects of market volatilities on Ashford Hospitality and I Minerals 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 I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and I Minerals.
Diversification Opportunities for Ashford Hospitality and I Minerals
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and IMAHF is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals 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 I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and I Minerals go up and down completely randomly.
Pair Corralation between Ashford Hospitality and I Minerals
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to under-perform the I Minerals. In addition to that, Ashford Hospitality is 1.31 times more volatile than I Minerals. It trades about -0.01 of its total potential returns per unit of risk. I Minerals is currently generating about 0.09 per unit of volatility. If you would invest 1.00 in I Minerals on August 29, 2024 and sell it today you would earn a total of 0.50 from holding I Minerals or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. I Minerals
Performance |
| Timeline |
| Ashford Hospitality Trust |
| I Minerals |
Ashford Hospitality and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and I Minerals
The main advantage of trading using opposite Ashford Hospitality and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.| Ashford Hospitality vs. Sotherly Hotels | Ashford Hospitality vs. Summit Hotel Properties | Ashford Hospitality vs. Diamondrock Hospitality | Ashford Hospitality vs. RLJ Lodging Trust |
| I Minerals vs. SNDL Inc | I Minerals vs. Helmerich and Payne | I Minerals vs. Kraft Heinz Co | I Minerals vs. Awilco Drilling PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |