Correlation Between Sunstone Hotel and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER, you can compare the effects of market volatilities on Sunstone Hotel and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and MINCO SILVER.
Diversification Opportunities for Sunstone Hotel and MINCO SILVER
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunstone and MINCO is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and MINCO SILVER go up and down completely randomly.
Pair Corralation between Sunstone Hotel and MINCO SILVER
Assuming the 90 days horizon Sunstone Hotel Investors is expected to generate 0.5 times more return on investment than MINCO SILVER. However, Sunstone Hotel Investors is 2.02 times less risky than MINCO SILVER. It trades about 0.09 of its potential returns per unit of risk. MINCO SILVER is currently generating about 0.02 per unit of risk. If you would invest 992.00 in Sunstone Hotel Investors on November 6, 2024 and sell it today you would earn a total of 98.00 from holding Sunstone Hotel Investors or generate 9.88% 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. MINCO SILVER
Performance |
| Timeline |
| Sunstone Hotel Investors |
| MINCO SILVER |
Sunstone Hotel and MINCO SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and MINCO SILVER
The main advantage of trading using opposite Sunstone Hotel and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER's long position.| Sunstone Hotel vs. SBM OFFSHORE | Sunstone Hotel vs. Ares Management Corp | Sunstone Hotel vs. STGEORGE MINING LTD | Sunstone Hotel vs. Cardinal Health |
| MINCO SILVER vs. Corsair Gaming | MINCO SILVER vs. LAir Liquide SA | MINCO SILVER vs. DELTA AIR LINES | MINCO SILVER vs. Alaska Air Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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