Correlation Between Ashford Hospitality and Trisura Group
Can any of the company-specific risk be diversified away by investing in both Ashford Hospitality and Trisura Group 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 Trisura Group 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 Trisura Group, you can compare the effects of market volatilities on Ashford Hospitality and Trisura Group 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 Trisura Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford Hospitality and Trisura Group.
Diversification Opportunities for Ashford Hospitality and Trisura Group
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ashford and Trisura is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and Trisura Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisura Group 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 Trisura Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisura Group has no effect on the direction of Ashford Hospitality i.e., Ashford Hospitality and Trisura Group go up and down completely randomly.
Pair Corralation between Ashford Hospitality and Trisura Group
Considering the 90-day investment horizon Ashford Hospitality Trust is expected to generate 4.12 times more return on investment than Trisura Group. However, Ashford Hospitality is 4.12 times more volatile than Trisura Group. It trades about 0.16 of its potential returns per unit of risk. Trisura Group is currently generating about -0.08 per unit of risk. If you would invest 692.00 in Ashford Hospitality Trust on August 31, 2024 and sell it today you would earn a total of 203.00 from holding Ashford Hospitality Trust or generate 29.34% 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. Trisura Group
Performance |
| Timeline |
| Ashford Hospitality Trust |
| Trisura Group |
Ashford Hospitality and Trisura Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashford Hospitality and Trisura Group
The main advantage of trading using opposite Ashford Hospitality and Trisura Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford Hospitality position performs unexpectedly, Trisura Group 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 Trisura Group will offset losses from the drop in Trisura Group'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 |
| Trisura Group vs. HUMANA INC | Trisura Group vs. SCOR PK | Trisura Group vs. Aquagold International | Trisura Group vs. Thrivent High Yield |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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