Correlation Between COMBA TELECOM and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM 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 COMBA TELECOM and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on COMBA TELECOM 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 COMBA TELECOM with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and Pebblebrook Hotel.
Diversification Opportunities for COMBA TELECOM and Pebblebrook Hotel
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMBA and Pebblebrook is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST 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 COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between COMBA TELECOM and Pebblebrook Hotel
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to under-perform the Pebblebrook Hotel. But the stock apears to be less risky and, when comparing its historical volatility, COMBA TELECOM SYST is 1.74 times less risky than Pebblebrook Hotel. The stock trades about -0.21 of its potential returns per unit of risk. The Pebblebrook Hotel Trust is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Pebblebrook Hotel Trust on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Pebblebrook Hotel Trust or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| COMBA TELECOM SYST |
| Pebblebrook Hotel Trust |
COMBA TELECOM and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and Pebblebrook Hotel
The main advantage of trading using opposite COMBA TELECOM and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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.| COMBA TELECOM vs. SIVERS SEMICONDUCTORS AB | COMBA TELECOM vs. Darden Restaurants | COMBA TELECOM vs. Reliance Steel Aluminum | COMBA TELECOM vs. Q2M Managementberatung AG |
| Pebblebrook Hotel vs. Apple Inc | Pebblebrook Hotel vs. Apple Inc | Pebblebrook Hotel vs. Apple Inc | Pebblebrook Hotel vs. Apple Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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