Correlation Between Corsair Gaming and Chatham Lodging
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Chatham Lodging 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 Corsair Gaming and Chatham Lodging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Chatham Lodging Trust, you can compare the effects of market volatilities on Corsair Gaming and Chatham Lodging 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 Corsair Gaming with a short position of Chatham Lodging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Chatham Lodging.
Diversification Opportunities for Corsair Gaming and Chatham Lodging
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Corsair and Chatham is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Chatham Lodging Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chatham Lodging Trust and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Chatham Lodging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chatham Lodging Trust has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Chatham Lodging go up and down completely randomly.
Pair Corralation between Corsair Gaming and Chatham Lodging
Given the investment horizon of 90 days Corsair Gaming is expected to under-perform the Chatham Lodging. In addition to that, Corsair Gaming is 5.74 times more volatile than Chatham Lodging Trust. It trades about -0.11 of its total potential returns per unit of risk. Chatham Lodging Trust is currently generating about -0.13 per unit of volatility. If you would invest 2,082 in Chatham Lodging Trust on September 13, 2025 and sell it today you would lose (113.00) from holding Chatham Lodging Trust or give up 5.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Chatham Lodging Trust
Performance |
| Timeline |
| Corsair Gaming |
| Chatham Lodging Trust |
Corsair Gaming and Chatham Lodging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Chatham Lodging
The main advantage of trading using opposite Corsair Gaming and Chatham Lodging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Chatham Lodging 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 Chatham Lodging will offset losses from the drop in Chatham Lodging's long position.| Corsair Gaming vs. Stratasys | Corsair Gaming vs. Alpha and Omega | Corsair Gaming vs. ADTRAN Inc | Corsair Gaming vs. Yimutian American Depositary |
| Chatham Lodging vs. Summit Hotel Properties | Chatham Lodging vs. Park Hotels Resorts | Chatham Lodging vs. Diamondrock Hospitality | Chatham Lodging vs. CoreCivic |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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