Correlation Between Summit Hotel and Oasis Hotel
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Oasis Hotel 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 Oasis Hotel 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 Oasis Hotel Resort, you can compare the effects of market volatilities on Summit Hotel and Oasis Hotel 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 Oasis Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Oasis Hotel.
Diversification Opportunities for Summit Hotel and Oasis Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Oasis Hotel Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Hotel Resort 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 Oasis Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Hotel Resort has no effect on the direction of Summit Hotel i.e., Summit Hotel and Oasis Hotel go up and down completely randomly.
Pair Corralation between Summit Hotel and Oasis Hotel
If you would invest 620.00 in Summit Hotel Properties on August 27, 2024 and sell it today you would earn a total of 17.00 from holding Summit Hotel Properties or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. Oasis Hotel Resort
Performance |
| Timeline |
| Summit Hotel Properties |
| Oasis Hotel Resort |
Summit Hotel and Oasis Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Oasis Hotel
The main advantage of trading using opposite Summit Hotel and Oasis Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Oasis Hotel 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 Oasis Hotel will offset losses from the drop in Oasis Hotel'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 |
| Oasis Hotel vs. Porvair plc | Oasis Hotel vs. Nike Inc | Oasis Hotel vs. Boot Barn Holdings | Oasis Hotel vs. Duluth Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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