Correlation Between Oasis Hotel and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and Summit 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 Oasis Hotel and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Summit Hotel Properties, you can compare the effects of market volatilities on Oasis Hotel and Summit 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 Oasis Hotel with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Summit Hotel.
Diversification Opportunities for Oasis Hotel and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties and Oasis 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 Oasis Hotel Resort are associated (or correlated) with Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of Oasis Hotel i.e., Oasis Hotel and Summit Hotel go up and down completely randomly.
Pair Corralation between Oasis Hotel and Summit Hotel
If you would invest 629.00 in Summit Hotel Properties on August 31, 2024 and sell it today you would earn a total of 23.00 from holding Summit Hotel Properties or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Summit Hotel Properties
Performance |
| Timeline |
| Oasis Hotel Resort |
| Summit Hotel Properties |
Oasis Hotel and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Summit Hotel
The main advantage of trading using opposite Oasis Hotel and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel position performs unexpectedly, Summit 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| Oasis Hotel vs. FormFactor | Oasis Hotel vs. Advanced Micro Devices | Oasis Hotel vs. Micron Technology | Oasis Hotel vs. Entegris |
| Summit Hotel vs. Sunstone Hotel Investors | Summit Hotel vs. Pebblebrook Hotel Trust | Summit Hotel vs. Ryman Hospitality Properties | Summit Hotel vs. Chatham Lodging Trust |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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