Correlation Between PLNIJ and Summit Hotel
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By analyzing existing cross correlation between PLNIJ 3875 17 JUL 29 and Summit Hotel Properties, you can compare the effects of market volatilities on PLNIJ 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 PLNIJ with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLNIJ and Summit Hotel.
Diversification Opportunities for PLNIJ and Summit Hotel
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLNIJ and Summit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PLNIJ 3875 17 JUL 29 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 PLNIJ 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 PLNIJ 3875 17 JUL 29 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 PLNIJ i.e., PLNIJ and Summit Hotel go up and down completely randomly.
Pair Corralation between PLNIJ and Summit Hotel
Assuming the 90 days trading horizon PLNIJ 3875 17 JUL 29 is expected to under-perform the Summit Hotel. In addition to that, PLNIJ is 1.34 times more volatile than Summit Hotel Properties. It trades about -0.71 of its total potential returns per unit of risk. Summit Hotel Properties is currently generating about 0.1 per unit of volatility. If you would invest 622.00 in Summit Hotel Properties on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Summit Hotel Properties or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.7% |
| Values | Daily Returns |
PLNIJ 3875 17 JUL 29 vs. Summit Hotel Properties
Performance |
| Timeline |
| PLNIJ 3875 17 |
| Summit Hotel Properties |
PLNIJ and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLNIJ and Summit Hotel
The main advantage of trading using opposite PLNIJ and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLNIJ 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.| PLNIJ vs. CF Industries Holdings | PLNIJ vs. Luxfer Holdings PLC | PLNIJ vs. Ecolab Inc | PLNIJ vs. The Mosaic |
| Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. RLJ Lodging Trust | Summit Hotel vs. Pebblebrook Hotel Trust | Summit Hotel vs. Sunstone Hotel Investors |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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