Correlation Between Pebblebrook Hotel and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Pebblebrook Hotel 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 Pebblebrook Hotel 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 Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Pebblebrook Hotel and Pebblebrook Hotel 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 Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Pebblebrook Hotel.
Diversification Opportunities for Pebblebrook Hotel and Pebblebrook Hotel
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pebblebrook and Pebblebrook is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust 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 Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Pebblebrook Hotel
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to under-perform the Pebblebrook Hotel. In addition to that, Pebblebrook Hotel is 1.24 times more volatile than Pebblebrook Hotel Trust. It trades about -0.17 of its total potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.19 per unit of volatility. If you would invest 2,272 in Pebblebrook Hotel Trust on August 31, 2024 and sell it today you would lose (90.00) from holding Pebblebrook Hotel Trust or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pebblebrook Hotel Trust vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Pebblebrook Hotel Trust |
| Pebblebrook Hotel Trust |
Pebblebrook Hotel and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pebblebrook Hotel and Pebblebrook Hotel
The main advantage of trading using opposite Pebblebrook Hotel and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Pebblebrook Hotel 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| Pebblebrook Hotel vs. Pebblebrook Hotel Trust | Pebblebrook Hotel vs. Sunstone Hotel Investors | Pebblebrook Hotel vs. Summit Hotel Properties | Pebblebrook Hotel vs. Summit Hotel Properties |
| Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Ashford Hospitality Trust | Pebblebrook Hotel vs. Braemar Hotels Resorts |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |