Correlation Between MONGOLIAN MINING and Pebblebrook Hotel

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

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

Diversification Opportunities for MONGOLIAN MINING and Pebblebrook Hotel

-0.49

Correlation Coefficient

MONGOLIAN MINING  Pebblebrook Hotel

Very good diversification

The 3 months correlation between MONGOLIAN and Pebblebrook is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MONGOLIAN MINING CRPREGS 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 MONGOLIAN MINING 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 MONGOLIAN MINING CRPREGS 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 MONGOLIAN MINING i.e., MONGOLIAN MINING and Pebblebrook Hotel go up and down completely randomly.

Pair Corralation between MONGOLIAN MINING and Pebblebrook Hotel

Assuming the 90 days trading horizon MONGOLIAN MINING CRPREGS is expected to under-perform the Pebblebrook Hotel. In addition to that, MONGOLIAN MINING is 1.06 times more volatile than Pebblebrook Hotel Trust. It trades about -0.11 of its total potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.11 per unit of volatility. If you would invest  1,129  in Pebblebrook Hotel Trust on October 22, 2024 and sell it today you would earn a total of  181.00  from holding Pebblebrook Hotel Trust or generate 16.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MONGOLIAN MINING CRPREGS  vs.  Pebblebrook Hotel Trust

MONGOLIAN MINING CRPREGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MONGOLIAN MINING CRPREGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pebblebrook Hotel Trust

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pebblebrook Hotel Trust are ranked lower than 8 (%) 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 MONGOLIAN MINING and Pebblebrook Hotel

The main advantage of trading using opposite MONGOLIAN MINING and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONGOLIAN MINING 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 MONGOLIAN MINING CRPREGS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.