Correlation Between Pebblebrook Hotel and ABO-GROUP ENVIRONMENT
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT 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 ABO GROUP ENVIRONMENT, you can compare the effects of market volatilities on Pebblebrook Hotel and ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and ABO-GROUP ENVIRONMENT.
Diversification Opportunities for Pebblebrook Hotel and ABO-GROUP ENVIRONMENT
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pebblebrook and ABO-GROUP is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and ABO GROUP ENVIRONMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABO GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABO GROUP ENVIRONMENT has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and ABO-GROUP ENVIRONMENT go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and ABO-GROUP ENVIRONMENT
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 1.65 times more return on investment than ABO-GROUP ENVIRONMENT. However, Pebblebrook Hotel is 1.65 times more volatile than ABO GROUP ENVIRONMENT. It trades about 0.07 of its potential returns per unit of risk. ABO GROUP ENVIRONMENT is currently generating about -0.14 per unit of risk. If you would invest 1,188 in Pebblebrook Hotel Trust on October 18, 2024 and sell it today you would earn a total of 132.00 from holding Pebblebrook Hotel Trust or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. ABO GROUP ENVIRONMENT
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| ABO GROUP ENVIRONMENT |
Pebblebrook Hotel and ABO-GROUP ENVIRONMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and ABO-GROUP ENVIRONMENT
The main advantage of trading using opposite Pebblebrook Hotel and ABO-GROUP ENVIRONMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT will offset losses from the drop in ABO-GROUP ENVIRONMENT's long position.| Pebblebrook Hotel vs. Meiko Electronics Co | Pebblebrook Hotel vs. Kingdee International Software | Pebblebrook Hotel vs. AXWAY SOFTWARE EO | Pebblebrook Hotel vs. Axway Software SA |
| ABO-GROUP ENVIRONMENT vs. MCEWEN MINING INC | ABO-GROUP ENVIRONMENT vs. Harmony Gold Mining | ABO-GROUP ENVIRONMENT vs. Zijin Mining Group | ABO-GROUP ENVIRONMENT vs. De Grey Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |