Correlation Between Braemar Hotel and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Braemar Hotel and Cresud SACIF 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 Hotel and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braemar Hotel Resorts and Cresud SACIF y, you can compare the effects of market volatilities on Braemar Hotel and Cresud SACIF 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 Hotel with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braemar Hotel and Cresud SACIF.
Diversification Opportunities for Braemar Hotel and Cresud SACIF
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Braemar and Cresud is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Braemar Hotel Resorts and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Braemar Hotel 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 Hotel Resorts are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Braemar Hotel i.e., Braemar Hotel and Cresud SACIF go up and down completely randomly.
Pair Corralation between Braemar Hotel and Cresud SACIF
Considering the 90-day investment horizon Braemar Hotel Resorts is expected to generate 1.39 times more return on investment than Cresud SACIF. However, Braemar Hotel is 1.39 times more volatile than Cresud SACIF y. It trades about 0.29 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.38 per unit of risk. If you would invest 286.00 in Braemar Hotel Resorts on September 1, 2024 and sell it today you would earn a total of 74.00 from holding Braemar Hotel Resorts or generate 25.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Braemar Hotel Resorts vs. Cresud SACIF y
Performance |
Timeline |
Braemar Hotel Resorts |
Cresud SACIF y |
Braemar Hotel and Cresud SACIF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Braemar Hotel and Cresud SACIF
The main advantage of trading using opposite Braemar Hotel and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braemar Hotel position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.Braemar Hotel vs. Summit Hotel Properties | Braemar Hotel vs. Service Properties Trust | Braemar Hotel vs. InnSuites Hospitality Trust | Braemar Hotel vs. Sotherly Hotels PR |
Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |