Correlation Between Pebblebrook Hotel and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Via Renewables 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 Via Renewables 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 Via Renewables, you can compare the effects of market volatilities on Pebblebrook Hotel and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Via Renewables.
Diversification Opportunities for Pebblebrook Hotel and Via Renewables
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pebblebrook and Via is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Via Renewables go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Via Renewables
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to under-perform the Via Renewables. In addition to that, Pebblebrook Hotel is 1.43 times more volatile than Via Renewables. It trades about -0.12 of its total potential returns per unit of risk. Via Renewables is currently generating about 0.15 per unit of volatility. If you would invest 2,263 in Via Renewables on October 21, 2024 and sell it today you would earn a total of 52.00 from holding Via Renewables or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. Via Renewables
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| Via Renewables |
Pebblebrook Hotel and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and Via Renewables
The main advantage of trading using opposite Pebblebrook Hotel and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| Pebblebrook Hotel vs. Braemar Hotels Resorts | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Braemar Hotels Resorts |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |