Correlation Between TravelCenters and Popular Capital
Can any of the company-specific risk be diversified away by investing in both TravelCenters and Popular Capital 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 Popular Capital 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 Popular Capital Trust, you can compare the effects of market volatilities on TravelCenters and Popular Capital 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 Popular Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TravelCenters and Popular Capital.
Diversification Opportunities for TravelCenters and Popular Capital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TravelCenters and Popular is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding TravelCenters Of America and Popular Capital Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Popular Capital Trust 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 Popular Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Popular Capital Trust has no effect on the direction of TravelCenters i.e., TravelCenters and Popular Capital go up and down completely randomly.
Pair Corralation between TravelCenters and Popular Capital
If you would invest 2,526 in TravelCenters Of America on August 31, 2024 and sell it today you would earn a total of 0.00 from holding TravelCenters Of America or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
TravelCenters Of America vs. Popular Capital Trust
Performance |
| Timeline |
| TravelCenters Of America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Popular Capital Trust |
TravelCenters and Popular Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TravelCenters and Popular Capital
The main advantage of trading using opposite TravelCenters and Popular Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TravelCenters position performs unexpectedly, Popular Capital 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 Popular Capital will offset losses from the drop in Popular Capital's long position.| TravelCenters vs. Sotherly Hotels Series | TravelCenters vs. B Riley Financial | TravelCenters vs. Sotherly Hotels Pref |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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