Correlation Between Braemar Hotel and Conifer Holding

Can any of the company-specific risk be diversified away by investing in both Braemar Hotel and Conifer Holding 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 Conifer Holding 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 Conifer Holding, you can compare the effects of market volatilities on Braemar Hotel and Conifer Holding 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 Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braemar Hotel and Conifer Holding.

Diversification Opportunities for Braemar Hotel and Conifer Holding

-0.09

Correlation Coefficient

Braemar Hotel  Conifer Holding

Good diversification

The 3 months correlation between Braemar and Conifer is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Braemar Hotel Resorts and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding 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 Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of Braemar Hotel i.e., Braemar Hotel and Conifer Holding go up and down completely randomly.

Pair Corralation between Braemar Hotel and Conifer Holding

Considering the 90-day investment horizon Braemar Hotel Resorts is expected to generate 0.75 times more return on investment than Conifer Holding. However, Braemar Hotel Resorts is 1.32 times less risky than Conifer Holding. It trades about -0.08 of its potential returns per unit of risk. Conifer Holding is currently generating about -0.19 per unit of risk. If you would invest  312.00  in Braemar Hotel Resorts on December 28, 2024 and sell it today you would lose (49.00) from holding Braemar Hotel Resorts or give up 15.71% of portfolio value over 90 days.

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

Braemar Hotel Resorts  vs.  Conifer Holding

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.

Conifer Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Conifer Holding 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 and fundamental 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.

Pair Trading with Braemar Hotel and Conifer Holding

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

The idea behind Braemar Hotel Resorts and Conifer Holding 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.