Correlation Between Hyatt Hotels and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and ATRESMEDIA 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 ATRESMEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and ATRESMEDIA, you can compare the effects of market volatilities on Hyatt Hotels and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and ATRESMEDIA.
Diversification Opportunities for Hyatt Hotels and ATRESMEDIA
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyatt and ATRESMEDIA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and ATRESMEDIA go up and down completely randomly.
Pair Corralation between Hyatt Hotels and ATRESMEDIA
Assuming the 90 days trading horizon Hyatt Hotels is expected to generate 1.2 times more return on investment than ATRESMEDIA. However, Hyatt Hotels is 1.2 times more volatile than ATRESMEDIA. It trades about -0.02 of its potential returns per unit of risk. ATRESMEDIA is currently generating about -0.07 per unit of risk. If you would invest 15,195 in Hyatt Hotels on November 4, 2024 and sell it today you would lose (100.00) from holding Hyatt Hotels or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hyatt Hotels vs. ATRESMEDIA
Performance |
| Timeline |
| Hyatt Hotels |
| ATRESMEDIA |
Hyatt Hotels and ATRESMEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and ATRESMEDIA
The main advantage of trading using opposite Hyatt Hotels and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA's long position.| Hyatt Hotels vs. Autohome ADR | Hyatt Hotels vs. CDL INVESTMENT | Hyatt Hotels vs. Gladstone Investment | Hyatt Hotels vs. INVITATION HOMES DL |
| ATRESMEDIA vs. Verizon Communications | ATRESMEDIA vs. Casio Computer CoLtd | ATRESMEDIA vs. CRISPR Therapeutics AG | ATRESMEDIA vs. Highlight Communications AG |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets |