Correlation Between TAT HONG and HYATT HOTELS-A
Can any of the company-specific risk be diversified away by investing in both TAT HONG and HYATT HOTELS-A 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 TAT HONG and HYATT HOTELS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAT HONG EQSRV and HYATT HOTELS A, you can compare the effects of market volatilities on TAT HONG and HYATT HOTELS-A 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 TAT HONG with a short position of HYATT HOTELS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAT HONG and HYATT HOTELS-A.
Diversification Opportunities for TAT HONG and HYATT HOTELS-A
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAT and HYATT is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding TAT HONG EQSRV and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A and TAT HONG 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 TAT HONG EQSRV are associated (or correlated) with HYATT HOTELS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of TAT HONG i.e., TAT HONG and HYATT HOTELS-A go up and down completely randomly.
Pair Corralation between TAT HONG and HYATT HOTELS-A
Assuming the 90 days horizon TAT HONG EQSRV is expected to generate 4.6 times more return on investment than HYATT HOTELS-A. However, TAT HONG is 4.6 times more volatile than HYATT HOTELS A. It trades about 0.16 of its potential returns per unit of risk. HYATT HOTELS A is currently generating about 0.01 per unit of risk. If you would invest 12.00 in TAT HONG EQSRV on November 3, 2024 and sell it today you would earn a total of 2.00 from holding TAT HONG EQSRV or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAT HONG EQSRV vs. HYATT HOTELS A
Performance |
| Timeline |
| TAT HONG EQSRV |
| HYATT HOTELS A |
TAT HONG and HYATT HOTELS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAT HONG and HYATT HOTELS-A
The main advantage of trading using opposite TAT HONG and HYATT HOTELS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAT HONG position performs unexpectedly, HYATT HOTELS-A 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 HYATT HOTELS-A will offset losses from the drop in HYATT HOTELS-A's long position.| TAT HONG vs. MAANSHAN IRON H | TAT HONG vs. Sunstone Hotel Investors | TAT HONG vs. Olympic Steel | TAT HONG vs. CALTAGIRONE EDITORE |
| HYATT HOTELS-A vs. MCEWEN MINING INC | HYATT HOTELS-A vs. ARDAGH METAL PACDL 0001 | HYATT HOTELS-A vs. Ringmetall SE | HYATT HOTELS-A vs. Nordic Semiconductor ASA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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