Correlation Between 2G ENERGY and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and Hyatt Hotels 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 2G ENERGY and Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and Hyatt Hotels, you can compare the effects of market volatilities on 2G ENERGY and Hyatt Hotels 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 2G ENERGY with a short position of Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and Hyatt Hotels.
Diversification Opportunities for 2G ENERGY and Hyatt Hotels
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 2GB and Hyatt is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels and 2G ENERGY 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 2G ENERGY are associated (or correlated) with Hyatt Hotels. 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 has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and Hyatt Hotels go up and down completely randomly.
Pair Corralation between 2G ENERGY and Hyatt Hotels
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the Hyatt Hotels. In addition to that, 2G ENERGY is 1.26 times more volatile than Hyatt Hotels. It trades about -0.04 of its total potential returns per unit of risk. Hyatt Hotels is currently generating about 0.06 per unit of volatility. If you would invest 13,206 in Hyatt Hotels on September 3, 2024 and sell it today you would earn a total of 1,519 from holding Hyatt Hotels or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2G ENERGY vs. Hyatt Hotels
Performance |
| Timeline |
| 2G ENERGY |
| Hyatt Hotels |
2G ENERGY and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and Hyatt Hotels
The main advantage of trading using opposite 2G ENERGY and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, Hyatt Hotels 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 will offset losses from the drop in Hyatt Hotels' long position.| 2G ENERGY vs. Hyatt Hotels | 2G ENERGY vs. MHP Hotel AG | 2G ENERGY vs. HYATT HOTELS A | 2G ENERGY vs. InterContinental Hotels Group |
| Hyatt Hotels vs. Dairy Farm International | Hyatt Hotels vs. Eidesvik Offshore ASA | Hyatt Hotels vs. Nufarm Limited | Hyatt Hotels vs. BW OFFSHORE LTD |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |