Correlation Between Summit Hotel and EAT WELL
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and EAT WELL 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 EAT WELL 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 EAT WELL INVESTMENT, you can compare the effects of market volatilities on Summit Hotel and EAT WELL 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 EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and EAT WELL.
Diversification Opportunities for Summit Hotel and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT 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 EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of Summit Hotel i.e., Summit Hotel and EAT WELL go up and down completely randomly.
Pair Corralation between Summit Hotel and EAT WELL
Assuming the 90 days horizon Summit Hotel Properties is expected to under-perform the EAT WELL. But the stock apears to be less risky and, when comparing its historical volatility, Summit Hotel Properties is 1.62 times less risky than EAT WELL. The stock trades about 0.0 of its potential returns per unit of risk. The EAT WELL INVESTMENT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14.00 in EAT WELL INVESTMENT on September 3, 2024 and sell it today you would lose (3.00) from holding EAT WELL INVESTMENT or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Summit Hotel Properties vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| Summit Hotel Properties |
| EAT WELL INVESTMENT |
Summit Hotel and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and EAT WELL
The main advantage of trading using opposite Summit Hotel and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| Summit Hotel vs. PSI Software AG | Summit Hotel vs. Cogent Communications Holdings | Summit Hotel vs. CyberArk Software | Summit Hotel vs. INTERSHOP Communications Aktiengesellschaft |
| EAT WELL vs. Blackstone Group | EAT WELL vs. BlackRock | EAT WELL vs. The Bank of | EAT WELL vs. Ameriprise Financial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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