Correlation Between SIEM OFFSHORE and Pebblebrook Hotel

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

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

Diversification Opportunities for SIEM OFFSHORE and Pebblebrook Hotel

0.65

Correlation Coefficient

SIEM OFFSHORE  Pebblebrook Hotel

Poor diversification

The 3 months correlation between SIEM and Pebblebrook is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and Pebblebrook Hotel go up and down completely randomly.

Pair Corralation between SIEM OFFSHORE and Pebblebrook Hotel

Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to generate 2.56 times more return on investment than Pebblebrook Hotel. However, SIEM OFFSHORE is 2.56 times more volatile than Pebblebrook Hotel Trust. It trades about -0.01 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.22 per unit of risk. If you would invest  204.00  in SIEM OFFSHORE NEW on December 23, 2024 and sell it today you would lose (21.00) from holding SIEM OFFSHORE NEW or give up 10.29% of portfolio value over 90 days.

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

SIEM OFFSHORE NEW  vs.  Pebblebrook Hotel Trust

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Very Weak

Over the last 90 days SIEM OFFSHORE NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, SIEM OFFSHORE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pebblebrook Hotel Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pebblebrook Hotel Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SIEM OFFSHORE and Pebblebrook Hotel

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

The idea behind SIEM OFFSHORE NEW and Pebblebrook Hotel Trust 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.