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
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rémy and Pebblebrook is 0.18. 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 under-perform the Pebblebrook Hotel. In addition to that, Rémy Cointreau is 1.23 times more volatile than Pebblebrook Hotel Trust. It trades about -0.13 of its total potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.14 per unit of volatility. If you would invest 1,269 in Pebblebrook Hotel Trust on October 24, 2024 and sell it today you would earn a total of 51.00 from holding Pebblebrook Hotel Trust or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| 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. Pebblebrook Hotel Trust | Rémy Cointreau vs. INDO RAMA SYNTHETIC | Rémy Cointreau vs. Sinopec Shanghai Petrochemical | Rémy Cointreau vs. TIANDE CHEMICAL |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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