Correlation Between Fidelity National and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Fidelity National 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 Fidelity National and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Fidelity National 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 Fidelity National with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Pebblebrook Hotel.
Diversification Opportunities for Fidelity National and Pebblebrook Hotel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Pebblebrook is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information 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 Fidelity National 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 Fidelity National Information 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 Fidelity National i.e., Fidelity National and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Fidelity National and Pebblebrook Hotel
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Pebblebrook Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Fidelity National Information is 1.96 times less risky than Pebblebrook Hotel. The stock trades about -0.1 of its potential returns per unit of risk. The Pebblebrook Hotel Trust is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Pebblebrook Hotel Trust on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Pebblebrook Hotel Trust or generate 18.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Fidelity National |
| Pebblebrook Hotel Trust |
Fidelity National and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Pebblebrook Hotel
The main advantage of trading using opposite Fidelity National and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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.| Fidelity National vs. Fukuyama Transporting Co | Fidelity National vs. DICKS Sporting Goods | Fidelity National vs. ARROW ELECTRONICS | Fidelity National vs. KIMBALL ELECTRONICS |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |