Correlation Between Summit Hotel and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Summit Hotel and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Canlan Ice.
Diversification Opportunities for Summit Hotel and Canlan Ice
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summit and Canlan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Summit Hotel i.e., Summit Hotel and Canlan Ice go up and down completely randomly.
Pair Corralation between Summit Hotel and Canlan Ice
If you would invest 297.00 in Canlan Ice Sports on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Summit Hotel Properties vs. Canlan Ice Sports
Performance |
| Timeline |
| Summit Hotel Properties |
| Canlan Ice Sports |
Summit Hotel and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Canlan Ice
The main advantage of trading using opposite Summit Hotel and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. RLJ Lodging Trust | Summit Hotel vs. Pebblebrook Hotel Trust | Summit Hotel vs. Sunstone Hotel Investors |
| Canlan Ice vs. American Airlines Group | Canlan Ice vs. Old Republic International | Canlan Ice vs. China Southern Airlines | Canlan Ice vs. flyExclusive, |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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