Correlation Between Hyatt Hotels and ALLIANZ SE
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and ALLIANZ SE 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 Hyatt Hotels and ALLIANZ SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and ALLIANZ SE UNSPADR, you can compare the effects of market volatilities on Hyatt Hotels and ALLIANZ SE 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 Hyatt Hotels with a short position of ALLIANZ SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and ALLIANZ SE.
Diversification Opportunities for Hyatt Hotels and ALLIANZ SE
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyatt and ALLIANZ is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and ALLIANZ SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ SE UNSPADR and Hyatt Hotels 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 Hyatt Hotels are associated (or correlated) with ALLIANZ SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ SE UNSPADR has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and ALLIANZ SE go up and down completely randomly.
Pair Corralation between Hyatt Hotels and ALLIANZ SE
Assuming the 90 days trading horizon Hyatt Hotels is expected to generate 2.42 times more return on investment than ALLIANZ SE. However, Hyatt Hotels is 2.42 times more volatile than ALLIANZ SE UNSPADR. It trades about 0.17 of its potential returns per unit of risk. ALLIANZ SE UNSPADR is currently generating about 0.0 per unit of risk. If you would invest 13,786 in Hyatt Hotels on September 1, 2024 and sell it today you would earn a total of 939.00 from holding Hyatt Hotels or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyatt Hotels vs. ALLIANZ SE UNSPADR
Performance |
| Timeline |
| Hyatt Hotels |
| ALLIANZ SE UNSPADR |
Hyatt Hotels and ALLIANZ SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and ALLIANZ SE
The main advantage of trading using opposite Hyatt Hotels and ALLIANZ SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, ALLIANZ SE 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 ALLIANZ SE will offset losses from the drop in ALLIANZ SE's long position.| Hyatt Hotels vs. Cleanaway Waste Management | Hyatt Hotels vs. ULTRA CLEAN HLDGS | Hyatt Hotels vs. Singapore Telecommunications Limited | Hyatt Hotels vs. Iridium Communications |
| ALLIANZ SE vs. MELIA HOTELS | ALLIANZ SE vs. Hyatt Hotels | ALLIANZ SE vs. MHP Hotel AG | ALLIANZ SE vs. INTERCONT HOTELS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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