Correlation Between Summit Hotel and Genfit SA
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and Genfit SA 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 Genfit SA 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 Genfit SA, you can compare the effects of market volatilities on Summit Hotel and Genfit SA 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 Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Genfit SA.
Diversification Opportunities for Summit Hotel and Genfit SA
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and Genfit is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA 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 Genfit SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit SA has no effect on the direction of Summit Hotel i.e., Summit Hotel and Genfit SA go up and down completely randomly.
Pair Corralation between Summit Hotel and Genfit SA
Assuming the 90 days horizon Summit Hotel is expected to generate 6.66 times less return on investment than Genfit SA. But when comparing it to its historical volatility, Summit Hotel Properties is 5.75 times less risky than Genfit SA. It trades about 0.04 of its potential returns per unit of risk. Genfit SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Genfit SA on September 19, 2024 and sell it today you would earn a total of 5.00 from holding Genfit SA or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Summit Hotel Properties vs. Genfit SA
Performance |
| Timeline |
| Summit Hotel Properties |
| Genfit SA |
Summit Hotel and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Genfit SA
The main advantage of trading using opposite Summit Hotel and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, Genfit SA 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 Genfit SA will offset losses from the drop in Genfit SA's long position.| Summit Hotel vs. Host Hotels Resorts | Summit Hotel vs. Sunstone Hotel Investors | Summit Hotel vs. Xenia Hotels Resorts | Summit Hotel vs. ASHFORD HOSPITTRUST |
| Genfit SA vs. Summit Hotel Properties | Genfit SA vs. NORWEGIAN AIR SHUT | Genfit SA vs. Host Hotels Resorts | Genfit SA vs. ALTAIR RES INC |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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