Correlation Between HYATT HOTELS and Klöckner
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Klöckner 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 Klöckner 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 Klckner Co SE, you can compare the effects of market volatilities on HYATT HOTELS and Klöckner 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 Klöckner. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Klöckner.
Diversification Opportunities for HYATT HOTELS and Klöckner
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HYATT and Klöckner is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Klckner Co SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klckner Co SE 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 Klöckner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klckner Co SE has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Klöckner go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Klöckner
Assuming the 90 days trading horizon HYATT HOTELS A is expected to generate 1.23 times more return on investment than Klöckner. However, HYATT HOTELS is 1.23 times more volatile than Klckner Co SE. It trades about 0.04 of its potential returns per unit of risk. Klckner Co SE is currently generating about 0.0 per unit of risk. If you would invest 14,525 in HYATT HOTELS A on August 31, 2024 and sell it today you would earn a total of 220.00 from holding HYATT HOTELS A or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HYATT HOTELS A vs. Klckner Co SE
Performance |
| Timeline |
| HYATT HOTELS A |
| Klckner Co SE |
HYATT HOTELS and Klöckner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Klöckner
The main advantage of trading using opposite HYATT HOTELS and Klöckner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Klöckner 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 Klöckner will offset losses from the drop in Klöckner's long position.| HYATT HOTELS vs. SIVERS SEMICONDUCTORS AB | HYATT HOTELS vs. Darden Restaurants | HYATT HOTELS vs. Reliance Steel Aluminum | HYATT HOTELS vs. Q2M Managementberatung AG |
| Klöckner vs. COMMERCIAL VEHICLE | Klöckner vs. CENTURIA OFFICE REIT | Klöckner vs. Motorcar Parts of | Klöckner vs. American Homes 4 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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