Correlation Between SPTSX Dividend and NexPoint Hospitality
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and NexPoint Hospitality Trust, you can compare the effects of market volatilities on SPTSX Dividend and NexPoint Hospitality 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 SPTSX Dividend with a short position of NexPoint Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and NexPoint Hospitality.
Diversification Opportunities for SPTSX Dividend and NexPoint Hospitality
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPTSX and NexPoint is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and NexPoint Hospitality Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPoint Hospitality and SPTSX Dividend 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 SPTSX Dividend Aristocrats are associated (or correlated) with NexPoint Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPoint Hospitality has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and NexPoint Hospitality go up and down completely randomly.
Pair Corralation between SPTSX Dividend and NexPoint Hospitality
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 288.65 times less return on investment than NexPoint Hospitality. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 563.49 times less risky than NexPoint Hospitality. It trades about 0.42 of its potential returns per unit of risk. NexPoint Hospitality Trust is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.50 in NexPoint Hospitality Trust on September 1, 2024 and sell it today you would earn a total of 29.50 from holding NexPoint Hospitality Trust or generate 1966.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. NexPoint Hospitality Trust
Performance |
| Timeline |
SPTSX Dividend and NexPoint Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
NexPoint Hospitality Trust
Pair trading matchups for NexPoint Hospitality
Pair Trading with SPTSX Dividend and NexPoint Hospitality
The main advantage of trading using opposite SPTSX Dividend and NexPoint Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, NexPoint Hospitality 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 NexPoint Hospitality will offset losses from the drop in NexPoint Hospitality's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| NexPoint Hospitality vs. HOME DEPOT CDR | NexPoint Hospitality vs. Nova Leap Health | NexPoint Hospitality vs. Gatos Silver | NexPoint Hospitality vs. Endeavour Silver Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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