Correlation Between Summit Hotel and Ryman Hospitality
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Ryman Hospitality 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 Ryman Hospitality 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 Ryman Hospitality Properties, you can compare the effects of market volatilities on Summit Hotel and Ryman Hospitality 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 Ryman Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Ryman Hospitality.
Diversification Opportunities for Summit Hotel and Ryman Hospitality
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and Ryman is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Ryman Hospitality Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryman Hospitality 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 Ryman Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryman Hospitality has no effect on the direction of Summit Hotel i.e., Summit Hotel and Ryman Hospitality go up and down completely randomly.
Pair Corralation between Summit Hotel and Ryman Hospitality
Considering the 90-day investment horizon Summit Hotel Properties is expected to under-perform the Ryman Hospitality. In addition to that, Summit Hotel is 1.33 times more volatile than Ryman Hospitality Properties. It trades about 0.0 of its total potential returns per unit of risk. Ryman Hospitality Properties is currently generating about 0.03 per unit of volatility. If you would invest 8,585 in Ryman Hospitality Properties on November 2, 2024 and sell it today you would earn a total of 1,963 from holding Ryman Hospitality Properties or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Summit Hotel Properties vs. Ryman Hospitality Properties
Performance |
| Timeline |
| Summit Hotel Properties |
| Ryman Hospitality |
Summit Hotel and Ryman Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Ryman Hospitality
The main advantage of trading using opposite Summit Hotel and Ryman Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Ryman Hospitality 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 Ryman Hospitality will offset losses from the drop in Ryman Hospitality'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 |
| Ryman Hospitality vs. RLJ Lodging Trust | Ryman Hospitality vs. Pebblebrook Hotel Trust | Ryman Hospitality vs. Xenia Hotels Resorts | Ryman Hospitality vs. Sunstone Hotel Investors |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |