Correlation Between STAG Industrial, and Booking Holdings

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

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

Diversification Opportunities for STAG Industrial, and Booking Holdings

0.0

Correlation Coefficient

STAG Industrial,  Booking Holdings

Pay attention - limited upside

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

Pair Corralation between STAG Industrial, and Booking Holdings

If you would invest (100.00) in Booking Holdings on October 5, 2024 and sell it today you would earn a total of  100.00  from holding Booking Holdings 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

STAG Industrial,  vs.  Booking Holdings

STAG Industrial,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STAG Industrial, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, STAG Industrial, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Booking Holdings

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Booking Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Booking Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with STAG Industrial, and Booking Holdings

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

The idea behind STAG Industrial, and Booking Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.