Correlation Between High Performance and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both High Performance and Summit Hotel 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 High Performance and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Performance Beverages and Summit Hotel Properties, you can compare the effects of market volatilities on High Performance and Summit Hotel 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 High Performance with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and Summit Hotel.
Diversification Opportunities for High Performance and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Performance Beverages and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties and High Performance 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 High Performance Beverages are associated (or correlated) with Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of High Performance i.e., High Performance and Summit Hotel go up and down completely randomly.
Pair Corralation between High Performance and Summit Hotel
Given the investment horizon of 90 days High Performance Beverages is expected to generate 166.93 times more return on investment than Summit Hotel. However, High Performance is 166.93 times more volatile than Summit Hotel Properties. It trades about 0.35 of its potential returns per unit of risk. Summit Hotel Properties is currently generating about 0.01 per unit of risk. If you would invest 0.00 in High Performance Beverages on September 13, 2024 and sell it today you would earn a total of 0.00 from holding High Performance Beverages or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
High Performance Beverages vs. Summit Hotel Properties
Performance |
| Timeline |
| High Performance Bev |
| Summit Hotel Properties |
High Performance and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Performance and Summit Hotel
The main advantage of trading using opposite High Performance and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, Summit Hotel 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| High Performance vs. V Group | High Performance vs. Fbec Worldwide | High Performance vs. Hiru Corporation | High Performance vs. Alkame Holdings |
| Summit Hotel vs. Park Hotels Resorts | Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. Ryman Hospitality Properties | Summit Hotel vs. Pebblebrook Hotel Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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