Correlation Between Summit Hotel and TELES Informationstech
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By analyzing existing cross correlation between Summit Hotel Properties and TELES Informationstechnologien AG, you can compare the effects of market volatilities on Summit Hotel and TELES Informationstech 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 TELES Informationstech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and TELES Informationstech.
Diversification Opportunities for Summit Hotel and TELES Informationstech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and TELES is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and TELES Informationstechnologien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELES Informationstech 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 TELES Informationstech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELES Informationstech has no effect on the direction of Summit Hotel i.e., Summit Hotel and TELES Informationstech go up and down completely randomly.
Pair Corralation between Summit Hotel and TELES Informationstech
Assuming the 90 days horizon Summit Hotel Properties is expected to generate 0.9 times more return on investment than TELES Informationstech. However, Summit Hotel Properties is 1.12 times less risky than TELES Informationstech. It trades about 0.06 of its potential returns per unit of risk. TELES Informationstechnologien AG is currently generating about -0.09 per unit of risk. If you would invest 535.00 in Summit Hotel Properties on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Summit Hotel Properties or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. TELES Informationstechnologien
Performance |
| Timeline |
| Summit Hotel Properties |
| TELES Informationstech |
Summit Hotel and TELES Informationstech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and TELES Informationstech
The main advantage of trading using opposite Summit Hotel and TELES Informationstech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, TELES Informationstech 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 TELES Informationstech will offset losses from the drop in TELES Informationstech'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 |
| TELES Informationstech vs. BOSTON BEER A | TELES Informationstech vs. Monster Beverage Corp | TELES Informationstech vs. Tsingtao Brewery | TELES Informationstech vs. MOLSON RS BEVERAGE |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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