Correlation Between Pebblebrook Hotel and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES, you can compare the effects of market volatilities on Pebblebrook Hotel and SPARTAN STORES 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 SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and SPARTAN STORES.
Diversification Opportunities for Pebblebrook Hotel and SPARTAN STORES
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pebblebrook and SPARTAN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES 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 SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and SPARTAN STORES go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and SPARTAN STORES
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to under-perform the SPARTAN STORES. In addition to that, Pebblebrook Hotel is 1.1 times more volatile than SPARTAN STORES. It trades about 0.0 of its total potential returns per unit of risk. SPARTAN STORES is currently generating about 0.01 per unit of volatility. If you would invest 1,778 in SPARTAN STORES on September 3, 2024 and sell it today you would earn a total of 2.00 from holding SPARTAN STORES or generate 0.11% 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. SPARTAN STORES
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| SPARTAN STORES |
Pebblebrook Hotel and SPARTAN STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and SPARTAN STORES
The main advantage of trading using opposite Pebblebrook Hotel and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, SPARTAN STORES 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES'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 |
| SPARTAN STORES vs. Playa Hotels Resorts | SPARTAN STORES vs. TYSON FOODS A | SPARTAN STORES vs. Host Hotels Resorts | SPARTAN STORES vs. Pebblebrook Hotel Trust |
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.
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