Correlation Between Ecc Cap and Braemar Hotels
Can any of the company-specific risk be diversified away by investing in both Ecc Cap and Braemar Hotels 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 Ecc Cap and Braemar Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecc Cap Corp and Braemar Hotels Resorts, you can compare the effects of market volatilities on Ecc Cap and Braemar Hotels 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 Ecc Cap with a short position of Braemar Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecc Cap and Braemar Hotels.
Diversification Opportunities for Ecc Cap and Braemar Hotels
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ecc and Braemar is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ecc Cap Corp and Braemar Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braemar Hotels Resorts and Ecc Cap 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 Ecc Cap Corp are associated (or correlated) with Braemar Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braemar Hotels Resorts has no effect on the direction of Ecc Cap i.e., Ecc Cap and Braemar Hotels go up and down completely randomly.
Pair Corralation between Ecc Cap and Braemar Hotels
If you would invest 2.00 in Ecc Cap Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Ecc Cap Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ecc Cap Corp vs. Braemar Hotels Resorts
Performance |
| Timeline |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Braemar Hotels Resorts |
Ecc Cap and Braemar Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecc Cap and Braemar Hotels
The main advantage of trading using opposite Ecc Cap and Braemar Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecc Cap position performs unexpectedly, Braemar Hotels 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 Braemar Hotels will offset losses from the drop in Braemar Hotels' long position.| Ecc Cap vs. Ready Capital Corp | Ecc Cap vs. Ellington Residential Mortgage | Ecc Cap vs. Ellington Financial | Ecc Cap vs. Dynex Capital |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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