Correlation Between Summit Hotel and Genfit
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on Summit Hotel and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Genfit.
Diversification Opportunities for Summit Hotel and Genfit
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and Genfit is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Summit Hotel i.e., Summit Hotel and Genfit go up and down completely randomly.
Pair Corralation between Summit Hotel and Genfit
Considering the 90-day investment horizon Summit Hotel Properties is expected to generate 0.45 times more return on investment than Genfit. However, Summit Hotel Properties is 2.22 times less risky than Genfit. It trades about 0.0 of its potential returns per unit of risk. Genfit is currently generating about -0.17 per unit of risk. If you would invest 651.00 in Summit Hotel Properties on December 4, 2024 and sell it today you would lose (1.00) from holding Summit Hotel Properties or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. Genfit
Performance |
| Timeline |
| Summit Hotel Properties |
| Genfit |
Summit Hotel and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Genfit
The main advantage of trading using opposite Summit Hotel and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit'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 |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |