Correlation Between ANTA SPORTS and Pebblebrook Hotel

Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS 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 ANTA SPORTS and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANTA SPORTS PRODUCT and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on ANTA SPORTS 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 ANTA SPORTS with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Pebblebrook Hotel.

Diversification Opportunities for ANTA SPORTS and Pebblebrook Hotel

-0.13

Correlation Coefficient

ANTA SPORTS  Pebblebrook Hotel

Good diversification

The 3 months correlation between ANTA and Pebblebrook is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT 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 ANTA SPORTS i.e., ANTA SPORTS and Pebblebrook Hotel go up and down completely randomly.

Pair Corralation between ANTA SPORTS and Pebblebrook Hotel

Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Pebblebrook Hotel. In addition to that, ANTA SPORTS is 1.57 times more volatile than Pebblebrook Hotel Trust. It trades about -0.06 of its total potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.39 per unit of volatility. If you would invest  1,180  in Pebblebrook Hotel Trust on September 12, 2024 and sell it today you would earn a total of  210.00  from holding Pebblebrook Hotel Trust or generate 17.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

ANTA SPORTS PRODUCT  vs.  Pebblebrook Hotel Trust

ANTA SPORTS PRODUCT

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA SPORTS PRODUCT are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ANTA SPORTS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pebblebrook Hotel Trust

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pebblebrook Hotel Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Pebblebrook Hotel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANTA SPORTS and Pebblebrook Hotel

The main advantage of trading using opposite ANTA SPORTS and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS 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.

The idea behind ANTA SPORTS PRODUCT and Pebblebrook Hotel Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.