Correlation Between HYATT HOTELS and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Boyaa Interactive 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 Boyaa Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYATT HOTELS A and Boyaa Interactive International, you can compare the effects of market volatilities on HYATT HOTELS and Boyaa Interactive 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 Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Boyaa Interactive.
Diversification Opportunities for HYATT HOTELS and Boyaa Interactive
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HYATT and Boyaa is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive 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 A are associated (or correlated) with Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Boyaa Interactive go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Boyaa Interactive
Assuming the 90 days trading horizon HYATT HOTELS is expected to generate 11.18 times less return on investment than Boyaa Interactive. But when comparing it to its historical volatility, HYATT HOTELS A is 4.29 times less risky than Boyaa Interactive. It trades about 0.24 of its potential returns per unit of risk. Boyaa Interactive International is currently generating about 0.63 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Boyaa Interactive International on September 2, 2024 and sell it today you would earn a total of 39.00 from holding Boyaa Interactive International or generate 195.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYATT HOTELS A vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| HYATT HOTELS A |
| Boyaa Interactive |
HYATT HOTELS and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Boyaa Interactive
The main advantage of trading using opposite HYATT HOTELS and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| HYATT HOTELS vs. Cal Maine Foods | HYATT HOTELS vs. Performance Food Group | HYATT HOTELS vs. Aegean Airlines SA | HYATT HOTELS vs. JAPAN AIRLINES |
| Boyaa Interactive vs. Park Hotels Resorts | Boyaa Interactive vs. JSC Halyk bank | Boyaa Interactive vs. HYATT HOTELS A | Boyaa Interactive vs. COVIVIO HOTELS INH |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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