Correlation Between Ashford Hospitality and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Jollibee Foods 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 Jollibee Foods 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 Jollibee Foods Corp, you can compare the effects of market volatilities on Ashford Hospitality and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Jollibee Foods.
Diversification Opportunities for Ashford Hospitality and Jollibee Foods
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Jollibee is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods Corp 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Jollibee Foods go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Jollibee Foods
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to generate 3.58 times more return on investment than Jollibee Foods. However, Ashford Hospitality is 3.58 times more volatile than Jollibee Foods Corp. It trades about 0.19 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about 0.11 per unit of risk. If you would invest 665.00 in Ashford Hospitality Trust on September 2, 2024 and sell it today you would earn a total of 230.00 from holding Ashford Hospitality Trust or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Jollibee Foods Corp
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Jollibee Foods Corp |
Ashford Hospitality and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Jollibee Foods
The main advantage of trading using opposite Ashford Hospitality and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Ashford Hospitality vs. Sotherly Hotels | Ashford Hospitality vs. Summit Hotel Properties | Ashford Hospitality vs. Diamondrock Hospitality | Ashford Hospitality vs. RLJ Lodging Trust |
| Jollibee Foods vs. McDonalds | Jollibee Foods vs. Starbucks | Jollibee Foods vs. Chipotle Mexican Grill | Jollibee Foods vs. Compass Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |