Correlation Between Braemar Hotel and Ashford

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

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

Diversification Opportunities for Braemar Hotel and Ashford

0.0

Correlation Coefficient

Braemar Hotel  Ashford

Pay attention - limited upside

The 3 months correlation between Braemar and Ashford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Braemar Hotel Resorts and Ashford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashford and Braemar 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 Braemar Hotel Resorts are associated (or correlated) with Ashford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashford has no effect on the direction of Braemar Hotel i.e., Braemar Hotel and Ashford go up and down completely randomly.

Pair Corralation between Braemar Hotel and Ashford

If you would invest (100.00) in Ashford on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Ashford or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Braemar Hotel Resorts  vs.  Ashford

Braemar Hotel Resorts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Braemar Hotel Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ashford

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ashford has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ashford is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Braemar Hotel and Ashford

The main advantage of trading using opposite Braemar Hotel and Ashford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braemar Hotel position performs unexpectedly, Ashford 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 Ashford will offset losses from the drop in Ashford's long position.

The idea behind Braemar Hotel Resorts and Ashford 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.