Correlation Between Kelly Strategic and AdvisorShares Hotel
Can any of the company-specific risk be diversified away by investing in both Kelly Strategic and AdvisorShares 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 Kelly Strategic and AdvisorShares Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelly Strategic Management and AdvisorShares Hotel ETF, you can compare the effects of market volatilities on Kelly Strategic and AdvisorShares 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 Kelly Strategic with a short position of AdvisorShares Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Strategic and AdvisorShares Hotel.
Diversification Opportunities for Kelly Strategic and AdvisorShares Hotel
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kelly and AdvisorShares is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Strategic Management and AdvisorShares Hotel ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Hotel ETF and Kelly Strategic 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 Kelly Strategic Management are associated (or correlated) with AdvisorShares Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Hotel ETF has no effect on the direction of Kelly Strategic i.e., Kelly Strategic and AdvisorShares Hotel go up and down completely randomly.
Pair Corralation between Kelly Strategic and AdvisorShares Hotel
If you would invest 2,401 in AdvisorShares Hotel ETF on September 4, 2024 and sell it today you would earn a total of 968.00 from holding AdvisorShares Hotel ETF or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
Kelly Strategic Management vs. AdvisorShares Hotel ETF
Performance |
| Timeline |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AdvisorShares Hotel ETF |
Kelly Strategic and AdvisorShares Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Strategic and AdvisorShares Hotel
The main advantage of trading using opposite Kelly Strategic and AdvisorShares Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Strategic position performs unexpectedly, AdvisorShares 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 AdvisorShares Hotel will offset losses from the drop in AdvisorShares Hotel's long position.| Kelly Strategic vs. Vanguard Consumer Staples | Kelly Strategic vs. Vanguard Financials Index | Kelly Strategic vs. Vanguard Information Technology | Kelly Strategic vs. Vanguard Consumer Discretionary |
| AdvisorShares Hotel vs. AdvisorShares Restaurant ETF | AdvisorShares Hotel vs. Defiance Hotel Airline | AdvisorShares Hotel vs. Direxion Daily Travel | AdvisorShares Hotel vs. Amplify ETF Trust |
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 Stocks Directory module to find actively traded stocks across global markets.
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