Correlation Between Host Hotels and ALTAIR RES
Can any of the company-specific risk be diversified away by investing in both Host Hotels and ALTAIR RES 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 Host Hotels and ALTAIR RES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and ALTAIR RES INC, you can compare the effects of market volatilities on Host Hotels and ALTAIR RES 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 Host Hotels with a short position of ALTAIR RES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and ALTAIR RES.
Diversification Opportunities for Host Hotels and ALTAIR RES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Host and ALTAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and ALTAIR RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTAIR RES INC and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with ALTAIR RES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTAIR RES INC has no effect on the direction of Host Hotels i.e., Host Hotels and ALTAIR RES go up and down completely randomly.
Pair Corralation between Host Hotels and ALTAIR RES
Assuming the 90 days horizon Host Hotels is expected to generate 43.59 times less return on investment than ALTAIR RES. But when comparing it to its historical volatility, Host Hotels Resorts is 31.76 times less risky than ALTAIR RES. It trades about 0.04 of its potential returns per unit of risk. ALTAIR RES INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.35 in ALTAIR RES INC on September 19, 2024 and sell it today you would lose (0.30) from holding ALTAIR RES INC or give up 85.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Host Hotels Resorts vs. ALTAIR RES INC
Performance |
| Timeline |
| Host Hotels Resorts |
| ALTAIR RES INC |
Host Hotels and ALTAIR RES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and ALTAIR RES
The main advantage of trading using opposite Host Hotels and ALTAIR RES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, ALTAIR RES 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 ALTAIR RES will offset losses from the drop in ALTAIR RES's long position.| Host Hotels vs. Sunstone Hotel Investors | Host Hotels vs. Xenia Hotels Resorts | Host Hotels vs. Summit Hotel Properties | Host Hotels vs. ASHFORD HOSPITTRUST |
| ALTAIR RES vs. American Lithium Corp | ALTAIR RES vs. ADRIATIC METALS LS 013355 | ALTAIR RES vs. Superior Plus Corp | ALTAIR RES vs. SIVERS SEMICONDUCTORS AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |