Correlation Between Pebblebrook Hotel and Hyundai
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Hyundai 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 Hyundai 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 Hyundai Motor, you can compare the effects of market volatilities on Pebblebrook Hotel and Hyundai 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 Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Hyundai.
Diversification Opportunities for Pebblebrook Hotel and Hyundai
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pebblebrook and Hyundai is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Hyundai go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Hyundai
Assuming the 90 days trading horizon Pebblebrook Hotel is expected to generate 10.69 times less return on investment than Hyundai. But when comparing it to its historical volatility, Pebblebrook Hotel Trust is 1.17 times less risky than Hyundai. It trades about 0.0 of its potential returns per unit of risk. Hyundai Motor is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,033 in Hyundai Motor on September 3, 2024 and sell it today you would earn a total of 167.00 from holding Hyundai Motor or generate 3.32% 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. Hyundai Motor
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| Hyundai Motor |
Pebblebrook Hotel and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and Hyundai
The main advantage of trading using opposite Pebblebrook Hotel and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Pebblebrook Hotel vs. X FAB Silicon Foundries | Pebblebrook Hotel vs. RETAIL FOOD GROUP | Pebblebrook Hotel vs. MARKET VECTR RETAIL | Pebblebrook Hotel vs. National Retail Properties |
| Hyundai vs. HK Electric Investments | Hyundai vs. Pebblebrook Hotel Trust | Hyundai vs. NH HOTEL GROUP | Hyundai vs. Apollo Investment 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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