Correlation Between Summit Hotel and AMGEN
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By analyzing existing cross correlation between Summit Hotel Properties and AMGEN INC 44, you can compare the effects of market volatilities on Summit Hotel and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and AMGEN.
Diversification Opportunities for Summit Hotel and AMGEN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Summit and AMGEN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of Summit Hotel i.e., Summit Hotel and AMGEN go up and down completely randomly.
Pair Corralation between Summit Hotel and AMGEN
Considering the 90-day investment horizon Summit Hotel Properties is expected to generate 2.21 times more return on investment than AMGEN. However, Summit Hotel is 2.21 times more volatile than AMGEN INC 44. It trades about 0.07 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about -0.05 per unit of risk. If you would invest 636.00 in Summit Hotel Properties on September 12, 2024 and sell it today you would earn a total of 53.00 from holding Summit Hotel Properties or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Summit Hotel Properties vs. AMGEN INC 44
Performance |
| Timeline |
| Summit Hotel Properties |
| AMGEN INC 44 |
Summit Hotel and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and AMGEN
The main advantage of trading using opposite Summit Hotel and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN'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 |
| AMGEN vs. AEP TEX INC | AMGEN vs. US BANK NATIONAL | AMGEN vs. Applied Blockchain | AMGEN vs. BigBearai 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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