Correlation Between Wicket Gaming and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming 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 Wicket Gaming and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and Summit Hotel Properties, you can compare the effects of market volatilities on Wicket Gaming 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 Wicket Gaming with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and Summit Hotel.
Diversification Opportunities for Wicket Gaming and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB 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 Wicket Gaming 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 Wicket Gaming AB 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 Wicket Gaming i.e., Wicket Gaming and Summit Hotel go up and down completely randomly.
Pair Corralation between Wicket Gaming and Summit Hotel
If you would invest (100.00) in Wicket Gaming AB on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Wicket Gaming AB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Wicket Gaming AB vs. Summit Hotel Properties
Performance |
| Timeline |
| Wicket Gaming AB |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Summit Hotel Properties |
Wicket Gaming and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and Summit Hotel
The main advantage of trading using opposite Wicket Gaming and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming 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.| Wicket Gaming vs. AKITA Drilling | Wicket Gaming vs. Pembina Pipeline | Wicket Gaming vs. Helmerich and Payne | Wicket Gaming vs. Radcom |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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