Correlation Between Summit Hotel and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on Summit Hotel and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Doubledown Interactive.
Diversification Opportunities for Summit Hotel and Doubledown Interactive
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and Doubledown is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Summit Hotel i.e., Summit Hotel and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Summit Hotel and Doubledown Interactive
Considering the 90-day investment horizon Summit Hotel is expected to generate 4.39 times less return on investment than Doubledown Interactive. But when comparing it to its historical volatility, Summit Hotel Properties is 2.01 times less risky than Doubledown Interactive. It trades about 0.01 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Doubledown Interactive Co on November 27, 2024 and sell it today you would earn a total of 193.00 from holding Doubledown Interactive Co or generate 24.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. Doubledown Interactive Co
Performance |
| Timeline |
| Summit Hotel Properties |
| Doubledown Interactive |
Summit Hotel and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Doubledown Interactive
The main advantage of trading using opposite Summit Hotel and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive'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 |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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