Correlation Between ASHFORD HOSPITTRUST and Hercules Capital
Can any of the company-specific risk be diversified away by investing in both ASHFORD HOSPITTRUST and Hercules Capital 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 ASHFORD HOSPITTRUST and Hercules Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASHFORD HOSPITTRUST and Hercules Capital, you can compare the effects of market volatilities on ASHFORD HOSPITTRUST and Hercules Capital 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 ASHFORD HOSPITTRUST with a short position of Hercules Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASHFORD HOSPITTRUST and Hercules Capital.
Diversification Opportunities for ASHFORD HOSPITTRUST and Hercules Capital
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASHFORD and Hercules is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ASHFORD HOSPITTRUST and Hercules Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Capital and ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST are associated (or correlated) with Hercules Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Capital has no effect on the direction of ASHFORD HOSPITTRUST i.e., ASHFORD HOSPITTRUST and Hercules Capital go up and down completely randomly.
Pair Corralation between ASHFORD HOSPITTRUST and Hercules Capital
Assuming the 90 days horizon ASHFORD HOSPITTRUST is expected to under-perform the Hercules Capital. In addition to that, ASHFORD HOSPITTRUST is 1.58 times more volatile than Hercules Capital. It trades about -0.16 of its total potential returns per unit of risk. Hercules Capital is currently generating about 0.11 per unit of volatility. If you would invest 1,757 in Hercules Capital on October 4, 2024 and sell it today you would earn a total of 155.00 from holding Hercules Capital or generate 8.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 96.67% |
Values | Daily Returns |
ASHFORD HOSPITTRUST vs. Hercules Capital
Performance |
Timeline |
ASHFORD HOSPITTRUST |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hercules Capital |
ASHFORD HOSPITTRUST and Hercules Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASHFORD HOSPITTRUST and Hercules Capital
The main advantage of trading using opposite ASHFORD HOSPITTRUST and Hercules Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASHFORD HOSPITTRUST position performs unexpectedly, Hercules Capital 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 Hercules Capital will offset losses from the drop in Hercules Capital's long position.ASHFORD HOSPITTRUST vs. Perma Fix Environmental Services | ASHFORD HOSPITTRUST vs. Japan Asia Investment | ASHFORD HOSPITTRUST vs. Khiron Life Sciences | ASHFORD HOSPITTRUST vs. ALGOMA STEEL GROUP |
Hercules Capital vs. COSTCO WHOLESALE CDR | Hercules Capital vs. National Retail Properties | Hercules Capital vs. QURATE RETAIL INC | Hercules Capital vs. Ross Stores |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |