Correlation Between Elbit Imaging and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging 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 Elbit Imaging and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Elbit Imaging 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 Elbit Imaging with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Pebblebrook Hotel.
Diversification Opportunities for Elbit Imaging and Pebblebrook Hotel
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elbit and Pebblebrook is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging i.e., Elbit Imaging and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Elbit Imaging and Pebblebrook Hotel
If you would invest 150.00 in Elbit Imaging on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Elbit Imaging or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Elbit Imaging vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Elbit Imaging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pebblebrook Hotel Trust |
Elbit Imaging and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Imaging and Pebblebrook Hotel
The main advantage of trading using opposite Elbit Imaging and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging 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.| Elbit Imaging vs. Edwards Lifesciences Corp | Elbit Imaging vs. Medtronic PLC | Elbit Imaging vs. Abbott Laboratories | Elbit Imaging vs. Boston Scientific Corp |
| Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Braemar Hotels Resorts |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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