Correlation Between Summit Hotel and Alliance All
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Alliance All 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 Alliance All 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 Alliance All Market, you can compare the effects of market volatilities on Summit Hotel and Alliance All 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 Alliance All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Alliance All.
Diversification Opportunities for Summit Hotel and Alliance All
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Alliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Alliance All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance All Market 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 Alliance All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance All Market has no effect on the direction of Summit Hotel i.e., Summit Hotel and Alliance All go up and down completely randomly.
Pair Corralation between Summit Hotel and Alliance All
If you would invest 645.00 in Summit Hotel Properties on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Summit Hotel Properties or generate 5.89% 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. Alliance All Market
Performance |
| Timeline |
| Summit Hotel Properties |
| Alliance All Market |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Hotel and Alliance All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Alliance All
The main advantage of trading using opposite Summit Hotel and Alliance All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Alliance All 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 Alliance All will offset losses from the drop in Alliance All's long position.| Summit Hotel vs. RLJ Lodging Trust | Summit Hotel vs. Pebblebrook Hotel Trust | Summit Hotel vs. Sunstone Hotel Investors | Summit Hotel vs. RLJ Lodging Trust |
| Alliance All vs. Fortress Transp Infra | Alliance All vs. Triton International Limited | Alliance All vs. Summit Hotel Properties | Alliance All vs. Warner Music Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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