Correlation Between VIENNA INSURANCE and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Pebblebrook 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 VIENNA INSURANCE and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on VIENNA INSURANCE and Pebblebrook 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 VIENNA INSURANCE with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Pebblebrook Hotel.
Diversification Opportunities for VIENNA INSURANCE and Pebblebrook Hotel
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between VIENNA and Pebblebrook is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and VIENNA INSURANCE 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 VIENNA INSURANCE GR are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Pebblebrook Hotel
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.34 times more return on investment than Pebblebrook Hotel. However, VIENNA INSURANCE GR is 2.92 times less risky than Pebblebrook Hotel. It trades about 0.49 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.09 per unit of risk. If you would invest 3,045 in VIENNA INSURANCE GR on November 8, 2024 and sell it today you would earn a total of 210.00 from holding VIENNA INSURANCE GR or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| VIENNA INSURANCE |
| Pebblebrook Hotel Trust |
VIENNA INSURANCE and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Pebblebrook Hotel
The main advantage of trading using opposite VIENNA INSURANCE and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Pebblebrook 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| VIENNA INSURANCE vs. INTERNET INJPADR 1 | VIENNA INSURANCE vs. TOWNSQUARE MEDIA INC | VIENNA INSURANCE vs. Live Nation Entertainment | VIENNA INSURANCE vs. Hemisphere Energy Corp |
| Pebblebrook Hotel vs. Easy Software AG | Pebblebrook Hotel vs. AUTO TRADER ADR | Pebblebrook Hotel vs. X FAB Silicon Foundries | Pebblebrook Hotel vs. SALESFORCE INC CDR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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