Correlation Between Summit Hotel and DDR Corp
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and DDR Corp 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 DDR Corp 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 DDR Corp, you can compare the effects of market volatilities on Summit Hotel and DDR Corp 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 DDR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and DDR Corp.
Diversification Opportunities for Summit Hotel and DDR Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and DDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and DDR Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DDR Corp 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 DDR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DDR Corp has no effect on the direction of Summit Hotel i.e., Summit Hotel and DDR Corp go up and down completely randomly.
Pair Corralation between Summit Hotel and DDR Corp
If you would invest 619.00 in Summit Hotel Properties on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Summit Hotel Properties or generate 6.14% 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. DDR Corp
Performance |
| Timeline |
| Summit Hotel Properties |
| DDR Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Hotel and DDR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and DDR Corp
The main advantage of trading using opposite Summit Hotel and DDR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, DDR Corp 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 DDR Corp will offset losses from the drop in DDR Corp'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 |
| DDR Corp vs. Summit Hotel Properties | DDR Corp vs. WEC Energy Group | DDR Corp vs. Western Acquisition Ventures | DDR Corp vs. Freedom Holding 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |