Correlation Between Boeing and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both Boeing and Summit 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 Boeing and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Summit Hotel Properties, you can compare the effects of market volatilities on Boeing and Summit 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 Boeing with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Summit Hotel.
Diversification Opportunities for Boeing and Summit Hotel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boeing and Summit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties and Boeing 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 The Boeing are associated (or correlated) with Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of Boeing i.e., Boeing and Summit Hotel go up and down completely randomly.
Pair Corralation between Boeing and Summit Hotel
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Summit Hotel. In addition to that, Boeing is 1.13 times more volatile than Summit Hotel Properties. It trades about -0.08 of its total potential returns per unit of risk. Summit Hotel Properties is currently generating about -0.04 per unit of volatility. If you would invest 556.00 in Summit Hotel Properties on September 5, 2025 and sell it today you would lose (34.00) from holding Summit Hotel Properties or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. Summit Hotel Properties
Performance |
| Timeline |
| Boeing |
| Summit Hotel Properties |
Boeing and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Summit Hotel
The main advantage of trading using opposite Boeing and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Summit 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| Boeing vs. Summit Hotel Properties | Boeing vs. Espey Mfg Electronics | Boeing vs. Park Hotels Resorts | Boeing vs. 51Talk Online Education |
| Summit Hotel vs. Sabra Healthcare REIT | Summit Hotel vs. Cardinal Health | Summit Hotel vs. Union Medical Healthcare | Summit Hotel vs. PPJ Healthcare Enterprises |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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