Correlation Between HYATT HOTELS and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Vastned Retail 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 Vastned Retail 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 Vastned Retail NV, you can compare the effects of market volatilities on HYATT HOTELS and Vastned Retail 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 Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Vastned Retail.
Diversification Opportunities for HYATT HOTELS and Vastned Retail
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HYATT and Vastned is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Vastned Retail NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail NV 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 Vastned Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastned Retail NV has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Vastned Retail go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Vastned Retail
Assuming the 90 days trading horizon HYATT HOTELS A is expected to generate 1.35 times more return on investment than Vastned Retail. However, HYATT HOTELS is 1.35 times more volatile than Vastned Retail NV. It trades about 0.05 of its potential returns per unit of risk. Vastned Retail NV is currently generating about -0.12 per unit of risk. If you would invest 14,575 in HYATT HOTELS A on October 16, 2024 and sell it today you would earn a total of 325.00 from holding HYATT HOTELS A or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.95% |
| Values | Daily Returns |
HYATT HOTELS A vs. Vastned Retail NV
Performance |
| Timeline |
| HYATT HOTELS A |
| Vastned Retail NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HYATT HOTELS and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Vastned Retail
The main advantage of trading using opposite HYATT HOTELS and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Vastned Retail 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 Vastned Retail will offset losses from the drop in Vastned Retail's long position.| HYATT HOTELS vs. AOI Electronics Co | HYATT HOTELS vs. STORE ELECTRONIC | HYATT HOTELS vs. Electronic Arts | HYATT HOTELS vs. STMICROELECTRONICS |
| Vastned Retail vs. NH HOTEL GROUP | Vastned Retail vs. COVIVIO HOTELS INH | Vastned Retail vs. HYATT HOTELS A | Vastned Retail vs. Taiwan Semiconductor Manufacturing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |