Correlation Between Pebblebrook Hotel and Sunrun
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Sunrun 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 Pebblebrook Hotel and Sunrun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pebblebrook Hotel Trust and Sunrun Inc, you can compare the effects of market volatilities on Pebblebrook Hotel and Sunrun 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 Pebblebrook Hotel with a short position of Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Sunrun.
Diversification Opportunities for Pebblebrook Hotel and Sunrun
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pebblebrook and Sunrun is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc and Pebblebrook 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 Pebblebrook Hotel Trust are associated (or correlated) with Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Sunrun go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Sunrun
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 0.41 times more return on investment than Sunrun. However, Pebblebrook Hotel Trust is 2.45 times less risky than Sunrun. It trades about 0.18 of its potential returns per unit of risk. Sunrun Inc is currently generating about -0.1 per unit of risk. If you would invest 1,140 in Pebblebrook Hotel Trust on September 5, 2024 and sell it today you would earn a total of 220.00 from holding Pebblebrook Hotel Trust or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. Sunrun Inc
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| Sunrun Inc |
Pebblebrook Hotel and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and Sunrun
The main advantage of trading using opposite Pebblebrook Hotel and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.| Pebblebrook Hotel vs. AECOM TECHNOLOGY | Pebblebrook Hotel vs. Check Point Software | Pebblebrook Hotel vs. Salesforce | Pebblebrook Hotel vs. Lamar Advertising |
| Sunrun vs. Playa Hotels Resorts | Sunrun vs. Hyatt Hotels | Sunrun vs. Pebblebrook Hotel Trust | Sunrun vs. SBA Communications Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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