Correlation Between Sunstone Hotel and Weyerhaeuser
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and Weyerhaeuser 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 Sunstone Hotel and Weyerhaeuser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and Weyerhaeuser, you can compare the effects of market volatilities on Sunstone Hotel and Weyerhaeuser 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 Sunstone Hotel with a short position of Weyerhaeuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and Weyerhaeuser.
Diversification Opportunities for Sunstone Hotel and Weyerhaeuser
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunstone and Weyerhaeuser is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and Weyerhaeuser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyerhaeuser and Sunstone 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 Sunstone Hotel Investors are associated (or correlated) with Weyerhaeuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyerhaeuser has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and Weyerhaeuser go up and down completely randomly.
Pair Corralation between Sunstone Hotel and Weyerhaeuser
Considering the 90-day investment horizon Sunstone Hotel Investors is expected to under-perform the Weyerhaeuser. In addition to that, Sunstone Hotel is 1.33 times more volatile than Weyerhaeuser. It trades about -0.2 of its total potential returns per unit of risk. Weyerhaeuser is currently generating about -0.03 per unit of volatility. If you would invest 2,999 in Weyerhaeuser on November 25, 2024 and sell it today you would lose (28.00) from holding Weyerhaeuser or give up 0.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sunstone Hotel Investors vs. Weyerhaeuser
Performance |
Timeline |
Sunstone Hotel Investors |
Weyerhaeuser |
Sunstone Hotel and Weyerhaeuser Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunstone Hotel and Weyerhaeuser
The main advantage of trading using opposite Sunstone Hotel and Weyerhaeuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, Weyerhaeuser 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 Weyerhaeuser will offset losses from the drop in Weyerhaeuser's long position.Sunstone Hotel vs. RLJ Lodging Trust | ||
Sunstone Hotel vs. Pebblebrook Hotel Trust | ||
Sunstone Hotel vs. Summit Hotel Properties | ||
Sunstone Hotel vs. Ryman Hospitality Properties |
Weyerhaeuser vs. Rayonier | ||
Weyerhaeuser vs. Lamar Advertising | ||
Weyerhaeuser vs. Farmland Partners | ||
Weyerhaeuser vs. Gladstone Land |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |