Correlation Between Sunstone Hotel and Rithm Acquisition
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and Rithm Acquisition 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 Sunstone Hotel and Rithm Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and Rithm Acquisition Corp, you can compare the effects of market volatilities on Sunstone Hotel and Rithm Acquisition 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 Sunstone Hotel with a short position of Rithm Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and Rithm Acquisition.
Diversification Opportunities for Sunstone Hotel and Rithm Acquisition
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunstone and Rithm is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and Rithm Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Acquisition Corp and Sunstone 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 Sunstone Hotel Investors are associated (or correlated) with Rithm Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Acquisition Corp has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and Rithm Acquisition go up and down completely randomly.
Pair Corralation between Sunstone Hotel and Rithm Acquisition
Considering the 90-day investment horizon Sunstone Hotel Investors is expected to under-perform the Rithm Acquisition. In addition to that, Sunstone Hotel is 5.11 times more volatile than Rithm Acquisition Corp. It trades about -0.05 of its total potential returns per unit of risk. Rithm Acquisition Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,027 in Rithm Acquisition Corp on September 5, 2025 and sell it today you would earn a total of 8.00 from holding Rithm Acquisition Corp or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunstone Hotel Investors vs. Rithm Acquisition Corp
Performance |
| Timeline |
| Sunstone Hotel Investors |
| Rithm Acquisition Corp |
Sunstone Hotel and Rithm Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and Rithm Acquisition
The main advantage of trading using opposite Sunstone Hotel and Rithm Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, Rithm Acquisition 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 Rithm Acquisition will offset losses from the drop in Rithm Acquisition's long position.| Sunstone Hotel vs. Space Communication | Sunstone Hotel vs. Freedom Internet Group | Sunstone Hotel vs. ISPAF | Sunstone Hotel vs. United Airlines Holdings |
| Rithm Acquisition vs. ACG Metals Limited | Rithm Acquisition vs. DATA Communications Management | Rithm Acquisition vs. Zijin Mining Group | Rithm Acquisition vs. Japan Display ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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