Correlation Between HYATT HOTELS and KION Group
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and KION Group 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 KION Group 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 KION Group AG, you can compare the effects of market volatilities on HYATT HOTELS and KION Group 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 KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and KION Group.
Diversification Opportunities for HYATT HOTELS and KION Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HYATT and KION is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG 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 KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and KION Group go up and down completely randomly.
Pair Corralation between HYATT HOTELS and KION Group
Assuming the 90 days trading horizon HYATT HOTELS A is expected to generate 1.01 times more return on investment than KION Group. However, HYATT HOTELS is 1.01 times more volatile than KION Group AG. It trades about -0.08 of its potential returns per unit of risk. KION Group AG is currently generating about -0.42 per unit of risk. If you would invest 15,545 in HYATT HOTELS A on October 7, 2024 and sell it today you would lose (365.00) from holding HYATT HOTELS A or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYATT HOTELS A vs. KION Group AG
Performance |
| Timeline |
| HYATT HOTELS A |
| KION Group AG |
HYATT HOTELS and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and KION Group
The main advantage of trading using opposite HYATT HOTELS and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc |
| KION Group vs. Penn National Gaming | KION Group vs. New Residential Investment | KION Group vs. Chuangs China Investments | KION Group vs. Hochschild Mining plc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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