Correlation Between Summit Hotel and Intel
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Summit Hotel and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Intel.
Diversification Opportunities for Summit Hotel and Intel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summit and Intel is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Summit Hotel i.e., Summit Hotel and Intel go up and down completely randomly.
Pair Corralation between Summit Hotel and Intel
Assuming the 90 days horizon Summit Hotel Properties is expected to generate 0.85 times more return on investment than Intel. However, Summit Hotel Properties is 1.18 times less risky than Intel. It trades about 0.21 of its potential returns per unit of risk. Intel is currently generating about 0.08 per unit of risk. If you would invest 543.00 in Summit Hotel Properties on September 2, 2024 and sell it today you would earn a total of 67.00 from holding Summit Hotel Properties or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. Intel
Performance |
| Timeline |
| Summit Hotel Properties |
| Intel |
Summit Hotel and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Intel
The main advantage of trading using opposite Summit Hotel and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Summit Hotel vs. Ubisoft Entertainment SA | Summit Hotel vs. Tower One Wireless | Summit Hotel vs. Consolidated Communications Holdings | Summit Hotel vs. Hollywood Bowl Group |
| Intel vs. InterContinental Hotels Group | Intel vs. CITY OFFICE REIT | Intel vs. 24SEVENOFFICE GROUP AB | Intel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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