Correlation Between PT Bank and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both PT Bank and Pebblebrook 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 PT Bank and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Maybank and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on PT Bank and Pebblebrook 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 PT Bank with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Pebblebrook Hotel.
Diversification Opportunities for PT Bank and Pebblebrook Hotel
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between BOZA and Pebblebrook is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and PT Bank 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 PT Bank Maybank are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of PT Bank i.e., PT Bank and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between PT Bank and Pebblebrook Hotel
Assuming the 90 days trading horizon PT Bank is expected to generate 12.41 times less return on investment than Pebblebrook Hotel. In addition to that, PT Bank is 1.87 times more volatile than Pebblebrook Hotel Trust. It trades about 0.02 of its total potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.39 per unit of volatility. If you would invest 1,180 in Pebblebrook Hotel Trust on September 12, 2024 and sell it today you would earn a total of 210.00 from holding Pebblebrook Hotel Trust or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Maybank vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| PT Bank Maybank |
| Pebblebrook Hotel Trust |
PT Bank and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Pebblebrook Hotel
The main advantage of trading using opposite PT Bank and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Pebblebrook 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| PT Bank vs. China Merchants Bank | PT Bank vs. HDFC Bank Limited | PT Bank vs. ICICI Bank Limited | PT Bank vs. PT Bank Central |
| Pebblebrook Hotel vs. Perdoceo Education | Pebblebrook Hotel vs. Scandinavian Tobacco Group | Pebblebrook Hotel vs. Cleanaway Waste Management | Pebblebrook Hotel vs. JAPAN TOBACCO UNSPADR12 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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