Correlation Between STAG Industrial and Ryman Hospitality
Can any of the company-specific risk be diversified away by investing in both STAG Industrial and Ryman Hospitality 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 STAG Industrial and Ryman Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial and Ryman Hospitality Properties, you can compare the effects of market volatilities on STAG Industrial and Ryman Hospitality 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 STAG Industrial with a short position of Ryman Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial and Ryman Hospitality.
Diversification Opportunities for STAG Industrial and Ryman Hospitality
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAG and Ryman is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial and Ryman Hospitality Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryman Hospitality and STAG Industrial 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 STAG Industrial are associated (or correlated) with Ryman Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryman Hospitality has no effect on the direction of STAG Industrial i.e., STAG Industrial and Ryman Hospitality go up and down completely randomly.
Pair Corralation between STAG Industrial and Ryman Hospitality
Given the investment horizon of 90 days STAG Industrial is expected to generate 35.03 times less return on investment than Ryman Hospitality. But when comparing it to its historical volatility, STAG Industrial is 1.08 times less risky than Ryman Hospitality. It trades about 0.01 of its potential returns per unit of risk. Ryman Hospitality Properties is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 10,753 in Ryman Hospitality Properties on September 2, 2024 and sell it today you would earn a total of 971.00 from holding Ryman Hospitality Properties or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STAG Industrial vs. Ryman Hospitality Properties
Performance |
| Timeline |
| STAG Industrial |
| Ryman Hospitality |
STAG Industrial and Ryman Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial and Ryman Hospitality
The main advantage of trading using opposite STAG Industrial and Ryman Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial position performs unexpectedly, Ryman Hospitality 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 Ryman Hospitality will offset losses from the drop in Ryman Hospitality's long position.| STAG Industrial vs. Douglas Emmett | STAG Industrial vs. Vornado Realty Trust | STAG Industrial vs. Highwoods Properties | STAG Industrial vs. Piedmont Office Realty |
| Ryman Hospitality vs. RLJ Lodging Trust | Ryman Hospitality vs. Pebblebrook Hotel Trust | Ryman Hospitality vs. Xenia Hotels Resorts | Ryman Hospitality vs. Sunstone Hotel Investors |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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