Correlation Between TELES Informationstech and Summit Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between TELES Informationstechnologien AG and Summit Hotel Properties, you can compare the effects of market volatilities on TELES Informationstech 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 TELES Informationstech with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELES Informationstech and Summit Hotel.
Diversification Opportunities for TELES Informationstech and Summit Hotel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between TELES and Summit is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TELES Informationstechnologien 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 TELES Informationstech 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 TELES Informationstechnologien AG 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 TELES Informationstech i.e., TELES Informationstech and Summit Hotel go up and down completely randomly.
Pair Corralation between TELES Informationstech and Summit Hotel
Assuming the 90 days trading horizon TELES Informationstechnologien AG is expected to under-perform the Summit Hotel. In addition to that, TELES Informationstech is 2.21 times more volatile than Summit Hotel Properties. It trades about -0.06 of its total potential returns per unit of risk. Summit Hotel Properties is currently generating about 0.01 per unit of volatility. If you would invest 636.00 in Summit Hotel Properties on September 3, 2024 and sell it today you would lose (26.00) from holding Summit Hotel Properties or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.55% |
| Values | Daily Returns |
TELES Informationstechnologien vs. Summit Hotel Properties
Performance |
| Timeline |
| TELES Informationstech |
| Summit Hotel Properties |
TELES Informationstech and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TELES Informationstech and Summit Hotel
The main advantage of trading using opposite TELES Informationstech and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TELES Informationstech 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.| TELES Informationstech vs. BOSTON BEER A | TELES Informationstech vs. Monster Beverage Corp | TELES Informationstech vs. Tsingtao Brewery | TELES Informationstech vs. MOLSON RS BEVERAGE |
| Summit Hotel vs. PSI Software AG | Summit Hotel vs. Cogent Communications Holdings | Summit Hotel vs. CyberArk Software | Summit Hotel vs. INTERSHOP Communications Aktiengesellschaft |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |