Correlation Between Summit Hotel and Cheetah Net
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Cheetah Net 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 Cheetah Net 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 Cheetah Net Supply, you can compare the effects of market volatilities on Summit Hotel and Cheetah Net 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 Cheetah Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Cheetah Net.
Diversification Opportunities for Summit Hotel and Cheetah Net
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summit and Cheetah is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Cheetah Net Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Net Supply 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 Cheetah Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Net Supply has no effect on the direction of Summit Hotel i.e., Summit Hotel and Cheetah Net go up and down completely randomly.
Pair Corralation between Summit Hotel and Cheetah Net
Considering the 90-day investment horizon Summit Hotel Properties is expected to under-perform the Cheetah Net. But the stock apears to be less risky and, when comparing its historical volatility, Summit Hotel Properties is 12.89 times less risky than Cheetah Net. The stock trades about 0.0 of its potential returns per unit of risk. The Cheetah Net Supply is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,855 in Cheetah Net Supply on September 3, 2024 and sell it today you would lose (6,661) from holding Cheetah Net Supply or give up 97.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.54% |
| Values | Daily Returns |
Summit Hotel Properties vs. Cheetah Net Supply
Performance |
| Timeline |
| Summit Hotel Properties |
| Cheetah Net Supply |
Summit Hotel and Cheetah Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Cheetah Net
The main advantage of trading using opposite Summit Hotel and Cheetah Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Cheetah Net 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 Cheetah Net will offset losses from the drop in Cheetah Net's long position.| Summit Hotel vs. Sotherly Hotels | Summit Hotel vs. Host Hotels Resorts | Summit Hotel vs. Service Properties Trust | Summit Hotel vs. Sunstone Hotel Investors |
| Cheetah Net vs. Tyson Foods | Cheetah Net vs. Mills Music Trust | Cheetah Net vs. Cumberland Pharmaceuticals | Cheetah Net vs. The Joint 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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