Correlation Between Choice Hotels and Fubotv
Can any of the company-specific risk be diversified away by investing in both Choice Hotels and Fubotv 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 Choice Hotels and Fubotv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choice Hotels International and Fubotv Inc, you can compare the effects of market volatilities on Choice Hotels and Fubotv 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 Choice Hotels with a short position of Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choice Hotels and Fubotv.
Diversification Opportunities for Choice Hotels and Fubotv
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Choice and Fubotv is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Choice Hotels International and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc and Choice 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 Choice Hotels International are associated (or correlated) with Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of Choice Hotels i.e., Choice Hotels and Fubotv go up and down completely randomly.
Pair Corralation between Choice Hotels and Fubotv
Considering the 90-day investment horizon Choice Hotels is expected to generate 10.99 times less return on investment than Fubotv. But when comparing it to its historical volatility, Choice Hotels International is 8.36 times less risky than Fubotv. It trades about 0.03 of its potential returns per unit of risk. Fubotv Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 207.00 in Fubotv Inc on November 2, 2024 and sell it today you would earn a total of 205.00 from holding Fubotv Inc or generate 99.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choice Hotels International vs. Fubotv Inc
Performance |
| Timeline |
| Choice Hotels Intern |
| Fubotv Inc |
Choice Hotels and Fubotv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choice Hotels and Fubotv
The main advantage of trading using opposite Choice Hotels and Fubotv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choice Hotels position performs unexpectedly, Fubotv 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 Fubotv will offset losses from the drop in Fubotv's long position.| Choice Hotels vs. Hyatt Hotels | Choice Hotels vs. Hilton Worldwide Holdings | Choice Hotels vs. InterContinental Hotels Group | Choice Hotels vs. Marriott International |
| Fubotv vs. Cumulus Media Class | Fubotv vs. iHeartMedia Class A | Fubotv vs. Gray Television | Fubotv vs. E W Scripps |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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