Correlation Between HYATT HOTELS and Bayer AG
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By analyzing existing cross correlation between HYATT HOTELS A and Bayer AG NA, you can compare the effects of market volatilities on HYATT HOTELS and Bayer AG 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 Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Bayer AG.
Diversification Opportunities for HYATT HOTELS and Bayer AG
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HYATT and Bayer is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Bayer AG NA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG NA 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 Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG NA has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Bayer AG go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Bayer AG
Assuming the 90 days trading horizon HYATT HOTELS A is expected to generate 0.73 times more return on investment than Bayer AG. However, HYATT HOTELS A is 1.38 times less risky than Bayer AG. It trades about 0.05 of its potential returns per unit of risk. Bayer AG NA is currently generating about -0.35 per unit of risk. If you would invest 14,435 in HYATT HOTELS A on August 30, 2024 and sell it today you would earn a total of 295.00 from holding HYATT HOTELS A or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYATT HOTELS A vs. Bayer AG NA
Performance |
| Timeline |
| HYATT HOTELS A |
| Bayer AG NA |
HYATT HOTELS and Bayer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Bayer AG
The main advantage of trading using opposite HYATT HOTELS and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.| HYATT HOTELS vs. Transportadora de Gas | HYATT HOTELS vs. Magic Software Enterprises | HYATT HOTELS vs. AXWAY SOFTWARE EO | HYATT HOTELS vs. Alfa Financial Software |
| Bayer AG vs. Park Hotels Resorts | Bayer AG vs. Xenia Hotels Resorts | Bayer AG vs. HYATT HOTELS A | Bayer AG vs. Playa Hotels Resorts |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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