Correlation Between Pebblebrook Hotel and SALESFORCE INC
Can any of the company-specific risk be diversified away by investing in both Pebblebrook Hotel and SALESFORCE INC 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 Pebblebrook Hotel and SALESFORCE INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pebblebrook Hotel Trust and SALESFORCE INC CDR, you can compare the effects of market volatilities on Pebblebrook Hotel and SALESFORCE INC 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 Pebblebrook Hotel with a short position of SALESFORCE INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pebblebrook Hotel and SALESFORCE INC.
Diversification Opportunities for Pebblebrook Hotel and SALESFORCE INC
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pebblebrook and SALESFORCE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pebblebrook Hotel Trust and SALESFORCE INC CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALESFORCE INC CDR and Pebblebrook 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 Pebblebrook Hotel Trust are associated (or correlated) with SALESFORCE INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALESFORCE INC CDR has no effect on the direction of Pebblebrook Hotel i.e., Pebblebrook Hotel and SALESFORCE INC go up and down completely randomly.
Pair Corralation between Pebblebrook Hotel and SALESFORCE INC
Assuming the 90 days trading horizon Pebblebrook Hotel Trust is expected to generate 1.18 times more return on investment than SALESFORCE INC. However, Pebblebrook Hotel is 1.18 times more volatile than SALESFORCE INC CDR. It trades about 0.09 of its potential returns per unit of risk. SALESFORCE INC CDR is currently generating about -0.09 per unit of risk. If you would invest 784.00 in Pebblebrook Hotel Trust on April 24, 2025 and sell it today you would earn a total of 121.00 from holding Pebblebrook Hotel Trust or generate 15.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pebblebrook Hotel Trust vs. SALESFORCE INC CDR
Performance |
Timeline |
Pebblebrook Hotel Trust |
SALESFORCE INC CDR |
Pebblebrook Hotel and SALESFORCE INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pebblebrook Hotel and SALESFORCE INC
The main advantage of trading using opposite Pebblebrook Hotel and SALESFORCE INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pebblebrook Hotel position performs unexpectedly, SALESFORCE INC 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 SALESFORCE INC will offset losses from the drop in SALESFORCE INC's long position.Pebblebrook Hotel vs. GungHo Online Entertainment | Pebblebrook Hotel vs. UNITED UTILITIES GR | Pebblebrook Hotel vs. Elmos Semiconductor SE | Pebblebrook Hotel vs. ELMOS SEMICONDUCTOR |
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Check out your portfolio center.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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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