Correlation Between PPJ Healthcare and Summit Hotel
Can any of the company-specific risk be diversified away by investing in both PPJ Healthcare 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 PPJ Healthcare and Summit Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPJ Healthcare Enterprises and Summit Hotel Properties, you can compare the effects of market volatilities on PPJ Healthcare 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 PPJ Healthcare with a short position of Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPJ Healthcare and Summit Hotel.
Diversification Opportunities for PPJ Healthcare and Summit Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PPJ and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PPJ Healthcare Enterprises 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 PPJ Healthcare 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 PPJ Healthcare Enterprises 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 PPJ Healthcare i.e., PPJ Healthcare and Summit Hotel go up and down completely randomly.
Pair Corralation between PPJ Healthcare and Summit Hotel
If you would invest 0.01 in PPJ Healthcare Enterprises on September 9, 2025 and sell it today you would earn a total of 0.00 from holding PPJ Healthcare Enterprises or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPJ Healthcare Enterprises vs. Summit Hotel Properties
Performance |
| Timeline |
| PPJ Healthcare Enter |
| Summit Hotel Properties |
PPJ Healthcare and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPJ Healthcare and Summit Hotel
The main advantage of trading using opposite PPJ Healthcare and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPJ Healthcare 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.| PPJ Healthcare vs. Livecare Corp | PPJ Healthcare vs. Oxford Investments Holdings | PPJ Healthcare vs. DATATRAK International | PPJ Healthcare vs. Rushnet |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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