Correlation Between Crown Holdings and LuxUrban Hotels

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

By analyzing existing cross correlation between Crown Holdings and LuxUrban Hotels 1300, you can compare the effects of market volatilities on Crown Holdings and LuxUrban Hotels 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 Crown Holdings with a short position of LuxUrban Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Holdings and LuxUrban Hotels.

Diversification Opportunities for Crown Holdings and LuxUrban Hotels

0.0

Correlation Coefficient

Crown Holdings  LuxUrban Hotels

Pay attention - limited upside

The 3 months correlation between Crown and LuxUrban is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Crown Holdings and LuxUrban Hotels 1300 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LuxUrban Hotels 1300 and Crown Holdings 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 Crown Holdings are associated (or correlated) with LuxUrban Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LuxUrban Hotels 1300 has no effect on the direction of Crown Holdings i.e., Crown Holdings and LuxUrban Hotels go up and down completely randomly.

Pair Corralation between Crown Holdings and LuxUrban Hotels

If you would invest  8,318  in Crown Holdings on December 21, 2024 and sell it today you would earn a total of  698.00  from holding Crown Holdings or generate 8.39% return on investment over 90 days.

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

Crown Holdings  vs.  LuxUrban Hotels 1300

Crown Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Crown Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Crown Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

LuxUrban Hotels 1300

Risk-Adjusted Performance

Very Weak

Over the last 90 days LuxUrban Hotels 1300 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, LuxUrban Hotels is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Crown Holdings and LuxUrban Hotels

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

The idea behind Crown Holdings and LuxUrban Hotels 1300 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.