Correlation Between HYATT HOTELS-A and DAX Index
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By analyzing existing cross correlation between HYATT HOTELS A and DAX Index, you can compare the effects of market volatilities on HYATT HOTELS-A 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-A with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS-A and DAX Index.
Diversification Opportunities for HYATT HOTELS-A and DAX Index
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HYATT and DAX is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A 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-A 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 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-A i.e., HYATT HOTELS-A and DAX Index go up and down completely randomly.
Pair Corralation between HYATT HOTELS-A and DAX Index
Assuming the 90 days trading horizon HYATT HOTELS-A is expected to generate 10.04 times less return on investment than DAX Index. In addition to that, HYATT HOTELS-A is 2.04 times more volatile than DAX Index. It trades about 0.03 of its total potential returns per unit of risk. DAX Index is currently generating about 0.62 per unit of volatility. If you would invest 2,021,619 in DAX Index on November 5, 2024 and sell it today you would earn a total of 151,586 from holding DAX Index or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYATT HOTELS A vs. DAX Index
Performance |
| Timeline |
HYATT HOTELS-A and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
HYATT HOTELS A
Pair trading matchups for HYATT HOTELS-A
DAX Index
Pair trading matchups for DAX Index
Pair Trading with HYATT HOTELS-A and DAX Index
The main advantage of trading using opposite HYATT HOTELS-A and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS-A 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-A vs. DAIDO METAL TD | HYATT HOTELS-A vs. Amkor Technology | HYATT HOTELS-A vs. Nippon Light Metal | HYATT HOTELS-A vs. NURAN WIRELESS INC |
| DAX Index vs. SOEDER SPORTFISKE AB | DAX Index vs. Zoom Video Communications | DAX Index vs. Yuexiu Transport Infrastructure | DAX Index vs. Ribbon Communications |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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