Correlation Between Eternal Hospitality and Tapestry
Can any of the company-specific risk be diversified away by investing in both Eternal Hospitality and Tapestry 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 Eternal Hospitality and Tapestry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eternal Hospitality Group and Tapestry, you can compare the effects of market volatilities on Eternal Hospitality and Tapestry 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 Eternal Hospitality with a short position of Tapestry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eternal Hospitality and Tapestry.
Diversification Opportunities for Eternal Hospitality and Tapestry
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eternal and Tapestry is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eternal Hospitality Group and Tapestry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tapestry and Eternal Hospitality 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 Eternal Hospitality Group are associated (or correlated) with Tapestry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tapestry has no effect on the direction of Eternal Hospitality i.e., Eternal Hospitality and Tapestry go up and down completely randomly.
Pair Corralation between Eternal Hospitality and Tapestry
If you would invest 10,240 in Tapestry on September 1, 2025 and sell it today you would earn a total of 688.00 from holding Tapestry or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
Eternal Hospitality Group vs. Tapestry
Performance |
| Timeline |
| Eternal Hospitality |
| Tapestry |
Eternal Hospitality and Tapestry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eternal Hospitality and Tapestry
The main advantage of trading using opposite Eternal Hospitality and Tapestry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eternal Hospitality position performs unexpectedly, Tapestry 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 Tapestry will offset losses from the drop in Tapestry's long position.| Eternal Hospitality vs. Active Health Foods | Eternal Hospitality vs. Xenia Hotels Resorts | Eternal Hospitality vs. United Natural Foods | Eternal Hospitality vs. RLJ Lodging Trust |
| Tapestry vs. Pebblebrook Hotel Trust | Tapestry vs. World Houseware Limited | Tapestry vs. Eternal Hospitality Group | Tapestry vs. Cardinal Health |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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