Correlation Between CODERE ONLINE and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both CODERE ONLINE and Pebblebrook 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 CODERE ONLINE and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CODERE ONLINE LUX and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on CODERE ONLINE and Pebblebrook 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 CODERE ONLINE with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and Pebblebrook Hotel.
Diversification Opportunities for CODERE ONLINE and Pebblebrook Hotel
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CODERE and Pebblebrook is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and CODERE ONLINE 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 CODERE ONLINE LUX are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of CODERE ONLINE i.e., CODERE ONLINE and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between CODERE ONLINE and Pebblebrook Hotel
Assuming the 90 days horizon CODERE ONLINE LUX is expected to under-perform the Pebblebrook Hotel. But the stock apears to be less risky and, when comparing its historical volatility, CODERE ONLINE LUX is 1.0 times less risky than Pebblebrook Hotel. The stock trades about -0.43 of its potential returns per unit of risk. The Pebblebrook Hotel Trust is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Pebblebrook Hotel Trust on October 14, 2024 and sell it today you would lose (89.00) from holding Pebblebrook Hotel Trust or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CODERE ONLINE LUX vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| CODERE ONLINE LUX |
| Pebblebrook Hotel Trust |
CODERE ONLINE and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CODERE ONLINE and Pebblebrook Hotel
The main advantage of trading using opposite CODERE ONLINE and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CODERE ONLINE position performs unexpectedly, Pebblebrook 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| CODERE ONLINE vs. UNIVMUSIC GRPADR050 | CODERE ONLINE vs. Elmos Semiconductor SE | CODERE ONLINE vs. Tower Semiconductor | CODERE ONLINE vs. CARSALESCOM |
| Pebblebrook Hotel vs. SALESFORCE INC CDR | Pebblebrook Hotel vs. Xinhua Winshare Publishing | Pebblebrook Hotel vs. Adtalem Global Education | Pebblebrook Hotel vs. CODERE ONLINE LUX |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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