Correlation Between Fubotv and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both Fubotv and Choice 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 Fubotv and Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubotv Inc and Choice Hotels International, you can compare the effects of market volatilities on Fubotv and Choice 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 Fubotv with a short position of Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubotv and Choice Hotels.
Diversification Opportunities for Fubotv and Choice Hotels
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fubotv and Choice is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fubotv Inc and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern and Fubotv 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 Fubotv Inc are associated (or correlated) with Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Fubotv i.e., Fubotv and Choice Hotels go up and down completely randomly.
Pair Corralation between Fubotv and Choice Hotels
Given the investment horizon of 90 days Fubotv Inc is expected to generate 8.36 times more return on investment than Choice Hotels. However, Fubotv is 8.36 times more volatile than Choice Hotels International. It trades about 0.04 of its potential returns per unit of risk. Choice Hotels International is currently generating about 0.03 per unit of risk. If you would invest 207.00 in Fubotv Inc on November 2, 2024 and sell it today you would earn a total of 205.00 from holding Fubotv Inc or generate 99.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubotv Inc vs. Choice Hotels International
Performance |
| Timeline |
| Fubotv Inc |
| Choice Hotels Intern |
Fubotv and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubotv and Choice Hotels
The main advantage of trading using opposite Fubotv and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubotv position performs unexpectedly, Choice 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| Fubotv vs. Cumulus Media Class | Fubotv vs. iHeartMedia Class A | Fubotv vs. Gray Television | Fubotv vs. E W Scripps |
| Choice Hotels vs. Hyatt Hotels | Choice Hotels vs. Hilton Worldwide Holdings | Choice Hotels vs. InterContinental Hotels Group | Choice Hotels vs. Marriott International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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