Correlation Between Ashford Hospitality and CC Neuberger
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and CC Neuberger 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 CC Neuberger 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 CC Neuberger Principal, you can compare the effects of market volatilities on Ashford Hospitality and CC Neuberger 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 CC Neuberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and CC Neuberger.
Diversification Opportunities for Ashford Hospitality and CC Neuberger
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and PRPC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and CC Neuberger Principal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CC Neuberger Principal 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 CC Neuberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CC Neuberger Principal has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and CC Neuberger go up and down completely randomly.
Pair Corralation between Ashford Hospitality and CC Neuberger
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to under-perform the CC Neuberger. In addition to that, Ashford Hospitality is 22.48 times more volatile than CC Neuberger Principal. It trades about -0.05 of its total potential returns per unit of risk. CC Neuberger Principal is currently generating about 0.22 per unit of volatility. If you would invest 1,007 in CC Neuberger Principal on August 30, 2024 and sell it today you would earn a total of 81.00 from holding CC Neuberger Principal or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.31% |
| Values | Daily Returns |
Ashford Hospitality Trust vs. CC Neuberger Principal
Performance |
| Timeline |
| Ashford Hospitality Trust |
| CC Neuberger Principal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ashford Hospitality and CC Neuberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and CC Neuberger
The main advantage of trading using opposite Ashford Hospitality and CC Neuberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, CC Neuberger 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 CC Neuberger will offset losses from the drop in CC Neuberger'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 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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