Correlation Between HYATT HOTELS and Visa

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Visa 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 Visa 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 Visa Inc, you can compare the effects of market volatilities on HYATT HOTELS and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Visa.

Diversification Opportunities for HYATT HOTELS and Visa

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between HYATT and Visa is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Visa go up and down completely randomly.

Pair Corralation between HYATT HOTELS and Visa

Assuming the 90 days trading horizon HYATT HOTELS A is expected to under-perform the Visa. In addition to that, HYATT HOTELS is 1.36 times more volatile than Visa Inc. It trades about -0.11 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.18 per unit of volatility. If you would invest  30,680  in Visa Inc on October 29, 2024 and sell it today you would earn a total of  795.00  from holding Visa Inc or generate 2.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

HYATT HOTELS A  vs.  Visa Inc

 Performance 
       Timeline  
HYATT HOTELS A 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in HYATT HOTELS A are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, HYATT HOTELS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Visa Inc 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Visa Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Visa exhibited solid returns over the last few months and may actually be approaching a breakup point.

HYATT HOTELS and Visa Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HYATT HOTELS and Visa

The main advantage of trading using opposite HYATT HOTELS and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.
HYATT HOTELS vs. Insurance Australia Group
HYATT HOTELS vs. DeVry Education Group
HYATT HOTELS vs. Xinhua Winshare Publishing
HYATT HOTELS vs. HANOVER INSURANCE
The idea behind HYATT HOTELS A and Visa Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Visa vs. HUTCHISON TELECOMM
Visa vs. China Communications Services
Visa vs. Comba Telecom Systems
Visa vs. TELECOM ITALIA
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY