Correlation Between Sunstone Hotel and Broadwind
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and Broadwind 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 Sunstone Hotel and Broadwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and Broadwind, you can compare the effects of market volatilities on Sunstone Hotel and Broadwind 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 Sunstone Hotel with a short position of Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and Broadwind.
Diversification Opportunities for Sunstone Hotel and Broadwind
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunstone and Broadwind is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind and Sunstone Hotel 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 Sunstone Hotel Investors are associated (or correlated) with Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and Broadwind go up and down completely randomly.
Pair Corralation between Sunstone Hotel and Broadwind
Assuming the 90 days horizon Sunstone Hotel Investors is expected to generate 0.43 times more return on investment than Broadwind. However, Sunstone Hotel Investors is 2.34 times less risky than Broadwind. It trades about 0.19 of its potential returns per unit of risk. Broadwind is currently generating about 0.0 per unit of risk. If you would invest 937.00 in Sunstone Hotel Investors on October 14, 2024 and sell it today you would earn a total of 233.00 from holding Sunstone Hotel Investors or generate 24.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunstone Hotel Investors vs. Broadwind
Performance |
| Timeline |
| Sunstone Hotel Investors |
| Broadwind |
Sunstone Hotel and Broadwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and Broadwind
The main advantage of trading using opposite Sunstone Hotel and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, Broadwind 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 Broadwind will offset losses from the drop in Broadwind's long position.| Sunstone Hotel vs. NH HOTEL GROUP | Sunstone Hotel vs. Sun Life Financial | Sunstone Hotel vs. Webster Financial | Sunstone Hotel vs. Park Hotels Resorts |
| Broadwind vs. DETALION GAMES SA | Broadwind vs. Sunstone Hotel Investors | Broadwind vs. Choice Hotels International | Broadwind vs. The Hongkong and |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |