Correlation Between Summit Hotel and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Mason Industrial 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 Mason Industrial 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 Mason Industrial Technology, you can compare the effects of market volatilities on Summit Hotel and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Mason Industrial.
Diversification Opportunities for Summit Hotel and Mason Industrial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and Mason is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of Summit Hotel i.e., Summit Hotel and Mason Industrial go up and down completely randomly.
Pair Corralation between Summit Hotel and Mason Industrial
If you would invest 586.00 in Summit Hotel Properties on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Summit Hotel Properties or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Summit Hotel Properties vs. Mason Industrial Technology
Performance |
| Timeline |
| Summit Hotel Properties |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Hotel and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Mason Industrial
The main advantage of trading using opposite Summit Hotel and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| Summit Hotel vs. Sotherly Hotels | Summit Hotel vs. Service Properties Trust | Summit Hotel vs. Sunstone Hotel Investors | Summit Hotel vs. Ryman Hospitality Properties |
| Mason Industrial vs. Meli Hotels International | Mason Industrial vs. The Hanover Insurance | Mason Industrial vs. The Cheesecake Factory | Mason Industrial vs. The Wendys Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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