Correlation Between Summit Hotel and Allegheny
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By analyzing existing cross correlation between Summit Hotel Properties and Allegheny Technologies 5875, you can compare the effects of market volatilities on Summit Hotel and Allegheny 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 Allegheny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Allegheny.
Diversification Opportunities for Summit Hotel and Allegheny
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Summit and Allegheny is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Allegheny Technologies 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Summit Hotel i.e., Summit Hotel and Allegheny go up and down completely randomly.
Pair Corralation between Summit Hotel and Allegheny
Considering the 90-day investment horizon Summit Hotel Properties is expected to generate 6.22 times more return on investment than Allegheny. However, Summit Hotel is 6.22 times more volatile than Allegheny Technologies 5875. It trades about 0.11 of its potential returns per unit of risk. Allegheny Technologies 5875 is currently generating about -0.01 per unit of risk. If you would invest 643.00 in Summit Hotel Properties on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Summit Hotel Properties or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Summit Hotel Properties vs. Allegheny Technologies 5875
Performance |
| Timeline |
| Summit Hotel Properties |
| Allegheny Technologies |
Summit Hotel and Allegheny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Allegheny
The main advantage of trading using opposite Summit Hotel and Allegheny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Allegheny 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 Allegheny will offset losses from the drop in Allegheny's long position.| Summit Hotel vs. Park Hotels Resorts | Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. Ryman Hospitality Properties | Summit Hotel vs. Pebblebrook Hotel Trust |
| Allegheny vs. Visteon Corp | Allegheny vs. Planet Fitness | Allegheny vs. Magna International | Allegheny vs. Brunswick |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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