Correlation Between Summit Hotel and 001192AH6
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By analyzing existing cross correlation between Summit Hotel Properties and AGL CAP P, you can compare the effects of market volatilities on Summit Hotel and 001192AH6 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 001192AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and 001192AH6.
Diversification Opportunities for Summit Hotel and 001192AH6
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and 001192AH6 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and AGL CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGL CAP P 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 001192AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGL CAP P has no effect on the direction of Summit Hotel i.e., Summit Hotel and 001192AH6 go up and down completely randomly.
Pair Corralation between Summit Hotel and 001192AH6
Considering the 90-day investment horizon Summit Hotel is expected to generate 295.79 times less return on investment than 001192AH6. But when comparing it to its historical volatility, Summit Hotel Properties is 43.67 times less risky than 001192AH6. It trades about 0.01 of its potential returns per unit of risk. AGL CAP P is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 10,501 in AGL CAP P on December 1, 2024 and sell it today you would lose (230.00) from holding AGL CAP P or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.45% |
| Values | Daily Returns |
Summit Hotel Properties vs. AGL CAP P
Performance |
| Timeline |
| Summit Hotel Properties |
| AGL CAP P |
Summit Hotel and 001192AH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and 001192AH6
The main advantage of trading using opposite Summit Hotel and 001192AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, 001192AH6 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 001192AH6 will offset losses from the drop in 001192AH6'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 |
| 001192AH6 vs. AEP TEX INC | 001192AH6 vs. iShares Global Consumer | 001192AH6 vs. Caterpillar | 001192AH6 vs. 3M Company |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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