Correlation Between Pebblebrook Hotel and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Socit Gnrale 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 Socit Gnrale 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 Socit Gnrale Socit, you can compare the effects of market volatilities on Pebblebrook Hotel and Socit Gnrale 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 Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Socit Gnrale.
Diversification Opportunities for Pebblebrook Hotel and Socit Gnrale
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pebblebrook and Socit is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Socit Gnrale go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Socit Gnrale
Assuming the 90 days trading horizon Pebblebrook Hotel is expected to generate 5.17 times less return on investment than Socit Gnrale. In addition to that, Pebblebrook Hotel is 1.02 times more volatile than Socit Gnrale Socit. It trades about 0.07 of its total potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.36 per unit of volatility. If you would invest 2,679 in Socit Gnrale Socit on October 25, 2024 and sell it today you would earn a total of 253.00 from holding Socit Gnrale Socit or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. Socit Gnrale Socit
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| Socit Gnrale Socit |
Pebblebrook Hotel and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and Socit Gnrale
The main advantage of trading using opposite Pebblebrook Hotel and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| Pebblebrook Hotel vs. Cars Inc | Pebblebrook Hotel vs. United Natural Foods | Pebblebrook Hotel vs. Motorcar Parts of | Pebblebrook Hotel vs. Cal Maine Foods |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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