Correlation Between Hyatt Hotels and DAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hyatt Hotels and DAX Index, you can compare the effects of market volatilities on Hyatt Hotels and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and DAX Index.
Diversification Opportunities for Hyatt Hotels and DAX Index
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyatt and DAX is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and DAX Index go up and down completely randomly.
Pair Corralation between Hyatt Hotels and DAX Index
Assuming the 90 days trading horizon Hyatt Hotels is expected to generate 1.47 times less return on investment than DAX Index. In addition to that, Hyatt Hotels is 2.27 times more volatile than DAX Index. It trades about 0.05 of its total potential returns per unit of risk. DAX Index is currently generating about 0.15 per unit of volatility. If you would invest 1,832,067 in DAX Index on October 25, 2024 and sell it today you would earn a total of 293,360 from holding DAX Index or generate 16.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyatt Hotels vs. DAX Index
Performance |
| Timeline |
Hyatt Hotels and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Hyatt Hotels
Pair trading matchups for Hyatt Hotels
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Hyatt Hotels and DAX Index
The main advantage of trading using opposite Hyatt Hotels and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Hyatt Hotels vs. PTT Global Chemical | Hyatt Hotels vs. Cognizant Technology Solutions | Hyatt Hotels vs. SCOTT TECHNOLOGY | Hyatt Hotels vs. Shin Etsu Chemical Co |
| DAX Index vs. Retail Estates NV | DAX Index vs. AEON STORES | DAX Index vs. BJs Wholesale Club | DAX Index vs. Nanjing Panda Electronics |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |