Correlation Between Amplifon SpA and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both Amplifon SpA and Summit Hotel 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 Amplifon SpA and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplifon SpA and Summit Hotel Properties, you can compare the effects of market volatilities on Amplifon SpA and Summit Hotel 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 Amplifon SpA with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplifon SpA and Summit Hotel.
Diversification Opportunities for Amplifon SpA and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplifon and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplifon SpA and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties and Amplifon SpA 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 Amplifon SpA are associated (or correlated) with Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of Amplifon SpA i.e., Amplifon SpA and Summit Hotel go up and down completely randomly.
Pair Corralation between Amplifon SpA and Summit Hotel
If you would invest (100.00) in Amplifon SpA on December 11, 2024 and sell it today you would earn a total of 100.00 from holding Amplifon SpA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amplifon SpA vs. Summit Hotel Properties
Performance |
| Timeline |
| Amplifon SpA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Summit Hotel Properties |
Amplifon SpA and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplifon SpA and Summit Hotel
The main advantage of trading using opposite Amplifon SpA and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplifon SpA position performs unexpectedly, Summit Hotel 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| Amplifon SpA vs. Avarone Metals | Amplifon SpA vs. BCE Inc | Amplifon SpA vs. Highway Holdings Limited | Amplifon SpA vs. Falcon Metals Limited |
| Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. RLJ Lodging Trust | Summit Hotel vs. Pebblebrook Hotel Trust | Summit Hotel vs. Sunstone Hotel Investors |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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