Correlation Between Summit Hotel and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Aegon NV 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 Summit Hotel and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Hotel Properties and Aegon NV PERP, you can compare the effects of market volatilities on Summit Hotel and Aegon NV 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 Summit Hotel with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Aegon NV.
Diversification Opportunities for Summit Hotel and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Aegon NV PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV PERP and Summit Hotel 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 Summit Hotel Properties are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV PERP has no effect on the direction of Summit Hotel i.e., Summit Hotel and Aegon NV go up and down completely randomly.
Pair Corralation between Summit Hotel and Aegon NV
If you would invest 609.00 in Summit Hotel Properties on September 3, 2024 and sell it today you would earn a total of 48.00 from holding Summit Hotel Properties or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. Aegon NV PERP
Performance |
| Timeline |
| Summit Hotel Properties |
| Aegon NV PERP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Hotel and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Aegon NV
The main advantage of trading using opposite Summit Hotel and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Summit Hotel vs. Sotherly Hotels | Summit Hotel vs. Service Properties Trust | Summit Hotel vs. Sunstone Hotel Investors | Summit Hotel vs. Ryman Hospitality Properties |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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