Correlation Between AM EAGLE and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both AM EAGLE 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 AM EAGLE and HYATT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and HYATT HOTELS A, you can compare the effects of market volatilities on AM EAGLE 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 AM EAGLE with a short position of HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and HYATT HOTELS.
Diversification Opportunities for AM EAGLE and HYATT HOTELS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between AFG and HYATT is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS 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 AM EAGLE 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 AM EAGLE OUTFITTERS 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 A has no effect on the direction of AM EAGLE i.e., AM EAGLE and HYATT HOTELS go up and down completely randomly.
Pair Corralation between AM EAGLE and HYATT HOTELS
Assuming the 90 days trading horizon AM EAGLE OUTFITTERS is expected to under-perform the HYATT HOTELS. In addition to that, AM EAGLE is 1.06 times more volatile than HYATT HOTELS A. It trades about -0.08 of its total potential returns per unit of risk. HYATT HOTELS A is currently generating about 0.04 per unit of volatility. If you would invest 14,525 in HYATT HOTELS A on August 31, 2024 and sell it today you would earn a total of 220.00 from holding HYATT HOTELS A or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. HYATT HOTELS A
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| HYATT HOTELS A |
AM EAGLE and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and HYATT HOTELS
The main advantage of trading using opposite AM EAGLE and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE 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's long position.| AM EAGLE vs. Gaztransport Technigaz SA | AM EAGLE vs. Zoom Video Communications | AM EAGLE vs. BII Railway Transportation | AM EAGLE vs. Warner Music Group |
| HYATT HOTELS vs. SIVERS SEMICONDUCTORS AB | HYATT HOTELS vs. Darden Restaurants | HYATT HOTELS vs. Reliance Steel Aluminum | HYATT HOTELS vs. Q2M Managementberatung AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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