Correlation Between Choice Hotels and Starr Peak
Can any of the company-specific risk be diversified away by investing in both Choice Hotels and Starr Peak 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 Starr Peak 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 Starr Peak Exploration, you can compare the effects of market volatilities on Choice Hotels and Starr Peak 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 Starr Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choice Hotels and Starr Peak.
Diversification Opportunities for Choice Hotels and Starr Peak
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Choice and Starr is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Choice Hotels International and Starr Peak Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starr Peak Exploration 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 Starr Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starr Peak Exploration has no effect on the direction of Choice Hotels i.e., Choice Hotels and Starr Peak go up and down completely randomly.
Pair Corralation between Choice Hotels and Starr Peak
If you would invest 11,340 in Choice Hotels International on September 1, 2024 and sell it today you would earn a total of 3,784 from holding Choice Hotels International or generate 33.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Choice Hotels International vs. Starr Peak Exploration
Performance |
| Timeline |
| Choice Hotels Intern |
| Starr Peak Exploration |
Choice Hotels and Starr Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choice Hotels and Starr Peak
The main advantage of trading using opposite Choice Hotels and Starr Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choice Hotels position performs unexpectedly, Starr Peak 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 Starr Peak will offset losses from the drop in Starr Peak'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 |
| Starr Peak vs. Ameriwest Lithium | Starr Peak vs. American Lithium Corp | Starr Peak vs. Global Helium Corp | Starr Peak vs. ZincX Resources Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |