Correlation Between Pebblebrook Hotel and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Pebblebrook Hotel and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Pebblebrook Hotel and COLUMBIA SPORTSWEAR
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pebblebrook and COLUMBIA is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and COLUMBIA SPORTSWEAR
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 1.16 times more return on investment than COLUMBIA SPORTSWEAR. However, Pebblebrook Hotel is 1.16 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.39 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.26 per unit of risk. If you would invest 1,180 in Pebblebrook Hotel Trust on September 12, 2024 and sell it today you would earn a total of 210.00 from holding Pebblebrook Hotel Trust or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| COLUMBIA SPORTSWEAR |
Pebblebrook Hotel and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Pebblebrook Hotel and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR'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 |
| COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |