Correlation Between Pebblebrook Hotel and ASPEN PHARUNADR
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and ASPEN PHARUNADR 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 ASPEN PHARUNADR 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 ASPEN PHARUNADR 1, you can compare the effects of market volatilities on Pebblebrook Hotel and ASPEN PHARUNADR 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 ASPEN PHARUNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and ASPEN PHARUNADR.
Diversification Opportunities for Pebblebrook Hotel and ASPEN PHARUNADR
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pebblebrook and ASPEN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and ASPEN PHARUNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN PHARUNADR 1 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 ASPEN PHARUNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN PHARUNADR 1 has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and ASPEN PHARUNADR go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and ASPEN PHARUNADR
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 0.96 times more return on investment than ASPEN PHARUNADR. However, Pebblebrook Hotel Trust is 1.04 times less risky than ASPEN PHARUNADR. It trades about 0.06 of its potential returns per unit of risk. ASPEN PHARUNADR 1 is currently generating about 0.01 per unit of risk. If you would invest 1,309 in Pebblebrook Hotel Trust on October 28, 2024 and sell it today you would earn a total of 21.00 from holding Pebblebrook Hotel Trust or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. ASPEN PHARUNADR 1
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| ASPEN PHARUNADR 1 |
Pebblebrook Hotel and ASPEN PHARUNADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and ASPEN PHARUNADR
The main advantage of trading using opposite Pebblebrook Hotel and ASPEN PHARUNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, ASPEN PHARUNADR 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 ASPEN PHARUNADR will offset losses from the drop in ASPEN PHARUNADR's long position.| Pebblebrook Hotel vs. Kingdee International Software | Pebblebrook Hotel vs. New Residential Investment | Pebblebrook Hotel vs. MidCap Financial Investment | Pebblebrook Hotel vs. FANDIFI TECHNOLOGY P |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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