Correlation Between Summit Hotel and COPT Defense
Can any of the company-specific risk be diversified away by investing in both Summit Hotel and COPT Defense 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 Summit Hotel and COPT Defense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Hotel Properties and COPT Defense Properties, you can compare the effects of market volatilities on Summit Hotel and COPT Defense 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 Summit Hotel with a short position of COPT Defense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and COPT Defense.
Diversification Opportunities for Summit Hotel and COPT Defense
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and COPT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and COPT Defense Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPT Defense Properties and Summit 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 Summit Hotel Properties are associated (or correlated) with COPT Defense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPT Defense Properties has no effect on the direction of Summit Hotel i.e., Summit Hotel and COPT Defense go up and down completely randomly.
Pair Corralation between Summit Hotel and COPT Defense
Considering the 90-day investment horizon Summit Hotel Properties is expected to generate 2.55 times more return on investment than COPT Defense. However, Summit Hotel is 2.55 times more volatile than COPT Defense Properties. It trades about 0.15 of its potential returns per unit of risk. COPT Defense Properties is currently generating about 0.09 per unit of risk. If you would invest 432.00 in Summit Hotel Properties on May 30, 2025 and sell it today you would earn a total of 111.00 from holding Summit Hotel Properties or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Hotel Properties vs. COPT Defense Properties
Performance |
| Timeline |
| Summit Hotel Properties |
| COPT Defense Properties |
Summit Hotel and COPT Defense Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and COPT Defense
The main advantage of trading using opposite Summit Hotel and COPT Defense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel position performs unexpectedly, COPT Defense 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 COPT Defense will offset losses from the drop in COPT Defense's long position.| Summit Hotel vs. RLJ Lodging Trust | Summit Hotel vs. Diamondrock Hospitality | Summit Hotel vs. Chatham Lodging Trust | Summit Hotel vs. Xenia Hotels Resorts |
| COPT Defense vs. Centessa Pharmaceuticals PLC | COPT Defense vs. Theriva Biologics | COPT Defense vs. Autohome | COPT Defense vs. Highwoods Properties |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |