Correlation Between Rémy Cointreau and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Rémy Cointreau 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 Rémy Cointreau and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rmy Cointreau SA and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Rémy Cointreau 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 Rémy Cointreau with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rémy Cointreau and Pebblebrook Hotel.
Diversification Opportunities for Rémy Cointreau and Pebblebrook Hotel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rémy and Pebblebrook is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA 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 Rémy Cointreau 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 Rmy Cointreau SA 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 Rémy Cointreau i.e., Rémy Cointreau and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Rémy Cointreau and Pebblebrook Hotel
Assuming the 90 days horizon Rmy Cointreau SA is expected to generate 1.33 times more return on investment than Pebblebrook Hotel. However, Rémy Cointreau is 1.33 times more volatile than Pebblebrook Hotel Trust. It trades about -0.03 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.1 per unit of risk. If you would invest 5,740 in Rmy Cointreau SA on November 4, 2024 and sell it today you would lose (240.00) from holding Rmy Cointreau SA or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rmy Cointreau SA vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Rmy Cointreau SA |
| Pebblebrook Hotel Trust |
Rémy Cointreau and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rémy Cointreau and Pebblebrook Hotel
The main advantage of trading using opposite Rémy Cointreau and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rémy Cointreau 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.| Rémy Cointreau vs. Applied Materials | Rémy Cointreau vs. Television Broadcasts Limited | Rémy Cointreau vs. Vulcan Materials | Rémy Cointreau vs. APPLIED MATERIALS |
| Pebblebrook Hotel vs. SIVERS SEMICONDUCTORS AB | Pebblebrook Hotel vs. NorAm Drilling AS | Pebblebrook Hotel vs. Volkswagen AG | Pebblebrook Hotel vs. Darden Restaurants |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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