Correlation Between Pebblebrook Hotel and CITIC TELECOM
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and CITIC TELECOM 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 CITIC TELECOM 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 CITIC TELECOM, you can compare the effects of market volatilities on Pebblebrook Hotel and CITIC TELECOM 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 CITIC TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and CITIC TELECOM.
Diversification Opportunities for Pebblebrook Hotel and CITIC TELECOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pebblebrook and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and CITIC TELECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC TELECOM 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 CITIC TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC TELECOM has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and CITIC TELECOM go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and CITIC TELECOM
If you would invest 1,212 in Pebblebrook Hotel Trust on September 12, 2024 and sell it today you would earn a total of 188.00 from holding Pebblebrook Hotel Trust or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. CITIC TELECOM
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| CITIC TELECOM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pebblebrook Hotel and CITIC TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and CITIC TELECOM
The main advantage of trading using opposite Pebblebrook Hotel and CITIC TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, CITIC TELECOM 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 CITIC TELECOM will offset losses from the drop in CITIC TELECOM's long position.| Pebblebrook Hotel vs. Perdoceo Education | Pebblebrook Hotel vs. Scandinavian Tobacco Group | Pebblebrook Hotel vs. Cleanaway Waste Management | Pebblebrook Hotel vs. JAPAN TOBACCO UNSPADR12 |
| CITIC TELECOM vs. EAGLE MATERIALS | CITIC TELECOM vs. Materialise NV | CITIC TELECOM vs. Rayonier Advanced Materials | CITIC TELECOM vs. Ameriprise Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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