Correlation Between Ashford Hospitality and K92 Mining
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and K92 Mining 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 K92 Mining 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 K92 Mining, you can compare the effects of market volatilities on Ashford Hospitality and K92 Mining 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 K92 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and K92 Mining.
Diversification Opportunities for Ashford Hospitality and K92 Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ashford and K92 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and K92 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K92 Mining 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 K92 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K92 Mining has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and K92 Mining go up and down completely randomly.
Pair Corralation between Ashford Hospitality and K92 Mining
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to generate 3.74 times more return on investment than K92 Mining. However, Ashford Hospitality is 3.74 times more volatile than K92 Mining. It trades about 0.07 of its potential returns per unit of risk. K92 Mining is currently generating about 0.13 per unit of risk. If you would invest 800.00 in Ashford Hospitality Trust on November 27, 2024 and sell it today you would earn a total of 50.00 from holding Ashford Hospitality Trust or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. K92 Mining
Performance |
| Timeline |
| Ashford Hospitality Trust |
| K92 Mining |
Ashford Hospitality and K92 Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and K92 Mining
The main advantage of trading using opposite Ashford Hospitality and K92 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, K92 Mining 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 K92 Mining will offset losses from the drop in K92 Mining'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 |
| K92 Mining vs. I 80 Gold Corp | K92 Mining vs. Equinox Gold Corp | K92 Mining vs. Contango ORE | K92 Mining vs. Orla Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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