Correlation Between HYATT HOTELS and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Cogent Communications 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 Cogent Communications 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 Cogent Communications Holdings, you can compare the effects of market volatilities on HYATT HOTELS and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Cogent Communications.
Diversification Opportunities for HYATT HOTELS and Cogent Communications
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HYATT and Cogent is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Cogent Communications go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Cogent Communications
Assuming the 90 days trading horizon HYATT HOTELS is expected to generate 1.23 times less return on investment than Cogent Communications. But when comparing it to its historical volatility, HYATT HOTELS A is 1.24 times less risky than Cogent Communications. It trades about 0.06 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,194 in Cogent Communications Holdings on August 31, 2024 and sell it today you would earn a total of 2,556 from holding Cogent Communications Holdings or generate 49.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
HYATT HOTELS A vs. Cogent Communications Holdings
Performance |
| Timeline |
| HYATT HOTELS A |
| Cogent Communications |
HYATT HOTELS and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Cogent Communications
The main advantage of trading using opposite HYATT HOTELS and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' 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 |
| Cogent Communications vs. ATT Inc | Cogent Communications vs. Deutsche Telekom AG | Cogent Communications vs. Superior Plus Corp | Cogent Communications vs. NMI Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |