Correlation Between Braemar Hotels and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Braemar Hotels and Slate Grocery 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 Braemar Hotels and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braemar Hotels Resorts and Slate Grocery REIT, you can compare the effects of market volatilities on Braemar Hotels and Slate Grocery 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 Braemar Hotels with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braemar Hotels and Slate Grocery.
Diversification Opportunities for Braemar Hotels and Slate Grocery
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Braemar and Slate is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Braemar Hotels Resorts and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Braemar Hotels 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 Braemar Hotels Resorts are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Braemar Hotels i.e., Braemar Hotels and Slate Grocery go up and down completely randomly.
Pair Corralation between Braemar Hotels and Slate Grocery
Assuming the 90 days trading horizon Braemar Hotels Resorts is expected to generate 1.27 times more return on investment than Slate Grocery. However, Braemar Hotels is 1.27 times more volatile than Slate Grocery REIT. It trades about 0.13 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.06 per unit of risk. If you would invest 1,842 in Braemar Hotels Resorts on September 12, 2024 and sell it today you would earn a total of 231.00 from holding Braemar Hotels Resorts or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braemar Hotels Resorts vs. Slate Grocery REIT
Performance |
| Timeline |
| Braemar Hotels Resorts |
| Slate Grocery REIT |
Braemar Hotels and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braemar Hotels and Slate Grocery
The main advantage of trading using opposite Braemar Hotels and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braemar Hotels position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Braemar Hotels vs. Ashford Hospitality Trust | Braemar Hotels vs. Ashford Hospitality Trust | Braemar Hotels vs. Braemar Hotels Resorts | Braemar Hotels vs. Ashford Hospitality Trust |
| Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Ashford Hospitality Trust | Slate Grocery vs. Braemar Hotels Resorts | Slate Grocery vs. Braemar Hotels Resorts |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |