Correlation Between Ashford Hospitality and Mexus Gold
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Mexus Gold 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 Mexus Gold 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 Mexus Gold Us, you can compare the effects of market volatilities on Ashford Hospitality and Mexus Gold 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 Mexus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Mexus Gold.
Diversification Opportunities for Ashford Hospitality and Mexus Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Mexus is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Mexus Gold Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mexus Gold Us 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 Mexus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mexus Gold Us has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Mexus Gold go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Mexus Gold
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to under-perform the Mexus Gold. But the stock apears to be less risky and, when comparing its historical volatility, Ashford Hospitality Trust is 10.17 times less risky than Mexus Gold. The stock trades about -0.05 of its potential returns per unit of risk. The Mexus Gold Us is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Mexus Gold Us on October 24, 2024 and sell it today you would lose (0.09) from holding Mexus Gold Us or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. Mexus Gold Us
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Mexus Gold Us |
Ashford Hospitality and Mexus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Mexus Gold
The main advantage of trading using opposite Ashford Hospitality and Mexus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Mexus Gold 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 Mexus Gold will offset losses from the drop in Mexus Gold'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 |
| Mexus Gold vs. Gold And Gemstone | Mexus Gold vs. Brightrock Gold Corp | Mexus Gold vs. Platinum Group Metals | Mexus Gold vs. Buyer Group International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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