Correlation Between Summit Hotel and ACHETER-LOUER
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and ACHETER-LOUER 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 Summit Hotel and ACHETER-LOUER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Hotel Properties and ACHETER LOUER EO 145612, you can compare the effects of market volatilities on Summit Hotel and ACHETER-LOUER 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 Summit Hotel with a short position of ACHETER-LOUER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and ACHETER-LOUER.
Diversification Opportunities for Summit Hotel and ACHETER-LOUER
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and ACHETER-LOUER is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and ACHETER LOUER EO 145612 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACHETER LOUER EO and Summit 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 Summit Hotel Properties are associated (or correlated) with ACHETER-LOUER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACHETER LOUER EO has no effect on the direction of Summit Hotel i.e., Summit Hotel and ACHETER-LOUER go up and down completely randomly.
Pair Corralation between Summit Hotel and ACHETER-LOUER
Assuming the 90 days horizon Summit Hotel is expected to generate 1165.02 times less return on investment than ACHETER-LOUER. But when comparing it to its historical volatility, Summit Hotel Properties is 45.06 times less risky than ACHETER-LOUER. It trades about 0.0 of its potential returns per unit of risk. ACHETER LOUER EO 145612 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 100,000,000 in ACHETER LOUER EO 145612 on October 18, 2024 and sell it today you would lose (99,999,990) from holding ACHETER LOUER EO 145612 or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. ACHETER LOUER EO 145612
Performance |
| Timeline |
| Summit Hotel Properties |
| ACHETER LOUER EO |
Summit Hotel and ACHETER-LOUER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and ACHETER-LOUER
The main advantage of trading using opposite Summit Hotel and ACHETER-LOUER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, ACHETER-LOUER 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 ACHETER-LOUER will offset losses from the drop in ACHETER-LOUER's long position.| Summit Hotel vs. Highlight Communications AG | Summit Hotel vs. MOBILE FACTORY INC | Summit Hotel vs. EAT WELL INVESTMENT | Summit Hotel vs. New Residential Investment |
| ACHETER-LOUER vs. Ross Stores | ACHETER-LOUER vs. Sixt Leasing SE | ACHETER-LOUER vs. PICKN PAY STORES | ACHETER-LOUER vs. Summit Hotel Properties |
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 Stocks Directory module to find actively traded stocks across global markets.
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