Correlation Between Senvest Capital and American Hotel
Can any of the company-specific risk be diversified away by investing in both Senvest Capital and American Hotel 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 Senvest Capital and American Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senvest Capital and American Hotel Income, you can compare the effects of market volatilities on Senvest Capital and American Hotel 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 Senvest Capital with a short position of American Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senvest Capital and American Hotel.
Diversification Opportunities for Senvest Capital and American Hotel
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senvest and American is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Senvest Capital and American Hotel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Hotel Income and Senvest Capital 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 Senvest Capital are associated (or correlated) with American Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Hotel Income has no effect on the direction of Senvest Capital i.e., Senvest Capital and American Hotel go up and down completely randomly.
Pair Corralation between Senvest Capital and American Hotel
Assuming the 90 days trading horizon Senvest Capital is expected to generate 0.3 times more return on investment than American Hotel. However, Senvest Capital is 3.36 times less risky than American Hotel. It trades about 0.04 of its potential returns per unit of risk. American Hotel Income is currently generating about 0.0 per unit of risk. If you would invest 30,500 in Senvest Capital on September 4, 2024 and sell it today you would earn a total of 4,000 from holding Senvest Capital or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Senvest Capital vs. American Hotel Income
Performance |
| Timeline |
| Senvest Capital |
| American Hotel Income |
Senvest Capital and American Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senvest Capital and American Hotel
The main advantage of trading using opposite Senvest Capital and American Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senvest Capital position performs unexpectedly, American Hotel 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 American Hotel will offset losses from the drop in American Hotel's long position.| Senvest Capital vs. Oculus VisionTech | Senvest Capital vs. CNJ Capital Investments | Senvest Capital vs. Verizon Communications CDR | Senvest Capital vs. Faction Investment Group |
| American Hotel vs. Slate Office REIT | American Hotel vs. BTB Real Estate | American Hotel vs. Inovalis Real Estate | American Hotel vs. True North Commercial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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