Correlation Between Sotherly Hotels and Mind Technology
Can any of the company-specific risk be diversified away by investing in both Sotherly Hotels and Mind Technology 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 Sotherly Hotels and Mind Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sotherly Hotels PR and Mind Technology Pref, you can compare the effects of market volatilities on Sotherly Hotels and Mind Technology 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 Sotherly Hotels with a short position of Mind Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sotherly Hotels and Mind Technology.
Diversification Opportunities for Sotherly Hotels and Mind Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sotherly and Mind is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sotherly Hotels PR and Mind Technology Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology Pref and Sotherly Hotels 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 Sotherly Hotels PR are associated (or correlated) with Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology Pref has no effect on the direction of Sotherly Hotels i.e., Sotherly Hotels and Mind Technology go up and down completely randomly.
Pair Corralation between Sotherly Hotels and Mind Technology
If you would invest (100.00) in Mind Technology Pref on November 1, 2024 and sell it today you would earn a total of 100.00 from holding Mind Technology Pref or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sotherly Hotels PR vs. Mind Technology Pref
Performance |
| Timeline |
| Sotherly Hotels PR |
| Mind Technology Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sotherly Hotels and Mind Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sotherly Hotels and Mind Technology
The main advantage of trading using opposite Sotherly Hotels and Mind Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sotherly Hotels position performs unexpectedly, Mind Technology 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 Mind Technology will offset losses from the drop in Mind Technology's long position.| Sotherly Hotels vs. Sotherly Hotels | Sotherly Hotels vs. Braemar Hotel Resorts | Sotherly Hotels vs. Summit Hotel Properties | Sotherly Hotels vs. Service Properties Trust |
| Mind Technology vs. Kraken Robotics | Mind Technology vs. SaverOne 2014 Ltd | Mind Technology vs. Focus Universal | Mind Technology vs. Nanalysis Scientific Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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