Correlation Between TravelCenters and Newtek Business
Can any of the company-specific risk be diversified away by investing in both TravelCenters and Newtek Business 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 TravelCenters and Newtek Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TravelCenters Of America and Newtek Business Services, you can compare the effects of market volatilities on TravelCenters and Newtek Business 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 TravelCenters with a short position of Newtek Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of TravelCenters and Newtek Business.
Diversification Opportunities for TravelCenters and Newtek Business
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TravelCenters and Newtek is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding TravelCenters Of America and Newtek Business Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newtek Business Services and TravelCenters 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 TravelCenters Of America are associated (or correlated) with Newtek Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newtek Business Services has no effect on the direction of TravelCenters i.e., TravelCenters and Newtek Business go up and down completely randomly.
Pair Corralation between TravelCenters and Newtek Business
If you would invest (100.00) in Newtek Business Services on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Newtek Business Services or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
TravelCenters Of America vs. Newtek Business Services
Performance |
| Timeline |
| TravelCenters Of America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Newtek Business Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TravelCenters and Newtek Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TravelCenters and Newtek Business
The main advantage of trading using opposite TravelCenters and Newtek Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TravelCenters position performs unexpectedly, Newtek Business 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 Newtek Business will offset losses from the drop in Newtek Business' long position.| TravelCenters vs. B Riley Financial | TravelCenters vs. Sotherly Hotels Series | TravelCenters vs. B Riley Financial |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |