Correlation Between Pebblebrook Hotel and Gildan Activewear
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and Gildan Activewear 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 Pebblebrook Hotel and Gildan Activewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pebblebrook Hotel Trust and Gildan Activewear, you can compare the effects of market volatilities on Pebblebrook Hotel and Gildan Activewear 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 Pebblebrook Hotel with a short position of Gildan Activewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and Gildan Activewear.
Diversification Opportunities for Pebblebrook Hotel and Gildan Activewear
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pebblebrook and Gildan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and Gildan Activewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gildan Activewear and Pebblebrook Hotel 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 Pebblebrook Hotel Trust are associated (or correlated) with Gildan Activewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gildan Activewear has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and Gildan Activewear go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and Gildan Activewear
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 1.53 times more return on investment than Gildan Activewear. However, Pebblebrook Hotel is 1.53 times more volatile than Gildan Activewear. It trades about 0.31 of its potential returns per unit of risk. Gildan Activewear is currently generating about 0.02 per unit of risk. If you would invest 1,200 in Pebblebrook Hotel Trust on September 8, 2024 and sell it today you would earn a total of 160.00 from holding Pebblebrook Hotel Trust or generate 13.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pebblebrook Hotel Trust vs. Gildan Activewear
Performance |
Timeline |
Pebblebrook Hotel Trust |
Gildan Activewear |
Pebblebrook Hotel and Gildan Activewear Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pebblebrook Hotel and Gildan Activewear
The main advantage of trading using opposite Pebblebrook Hotel and Gildan Activewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, Gildan Activewear 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 Gildan Activewear will offset losses from the drop in Gildan Activewear's long position.Pebblebrook Hotel vs. RYU Apparel | Pebblebrook Hotel vs. Luckin Coffee | Pebblebrook Hotel vs. SWISS WATER DECAFFCOFFEE | Pebblebrook Hotel vs. DFS Furniture PLC |
Gildan Activewear vs. HM HENMAUUNSPADR 15 | Gildan Activewear vs. H M Hennes | Gildan Activewear vs. Superior Plus Corp | Gildan Activewear vs. NMI Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |