Correlation Between Sotherly Hotels and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Sotherly Hotels and Superior Plus 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 Sotherly Hotels and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sotherly Hotels and Superior Plus Corp, you can compare the effects of market volatilities on Sotherly Hotels and Superior Plus 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 Sotherly Hotels with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sotherly Hotels and Superior Plus.
Diversification Opportunities for Sotherly Hotels and Superior Plus
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sotherly and Superior is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sotherly Hotels and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Sotherly Hotels 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 Sotherly Hotels are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Sotherly Hotels i.e., Sotherly Hotels and Superior Plus go up and down completely randomly.
Pair Corralation between Sotherly Hotels and Superior Plus
Assuming the 90 days horizon Sotherly Hotels is expected to under-perform the Superior Plus. In addition to that, Sotherly Hotels is 1.3 times more volatile than Superior Plus Corp. It trades about -0.15 of its total potential returns per unit of risk. Superior Plus Corp is currently generating about 0.02 per unit of volatility. If you would invest 426.00 in Superior Plus Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Superior Plus Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sotherly Hotels vs. Superior Plus Corp
Performance |
| Timeline |
| Sotherly Hotels |
| Superior Plus Corp |
Sotherly Hotels and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sotherly Hotels and Superior Plus
The main advantage of trading using opposite Sotherly Hotels and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sotherly Hotels position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Sotherly Hotels vs. Superior Plus Corp | Sotherly Hotels vs. NMI Holdings | Sotherly Hotels vs. Origin Agritech | Sotherly Hotels vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance |