Correlation Between Deutz AG and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both Deutz AG and Summit 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 Deutz AG and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutz AG and Summit Hotel Properties, you can compare the effects of market volatilities on Deutz AG and Summit 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 Deutz AG with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutz AG and Summit Hotel.
Diversification Opportunities for Deutz AG and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutz and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutz AG and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties and Deutz AG 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 Deutz AG are associated (or correlated) with Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of Deutz AG i.e., Deutz AG and Summit Hotel go up and down completely randomly.
Pair Corralation between Deutz AG and Summit Hotel
If you would invest 640.00 in Summit Hotel Properties on October 9, 2024 and sell it today you would earn a total of 10.00 from holding Summit Hotel Properties or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Deutz AG vs. Summit Hotel Properties
Performance |
| Timeline |
| Deutz AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Summit Hotel Properties |
Deutz AG and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutz AG and Summit Hotel
The main advantage of trading using opposite Deutz AG and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutz AG position performs unexpectedly, Summit 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| Deutz AG vs. TRAVEL LEISURE DL 01 | Deutz AG vs. COLUMBIA SPORTSWEAR | Deutz AG vs. PLAY2CHILL SA ZY | Deutz AG vs. Columbia Sportswear |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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