Correlation Between Global Partner and Park Hotels
Can any of the company-specific risk be diversified away by investing in both Global Partner and Park 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 Global Partner and Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partner Acq and Park Hotels Resorts, you can compare the effects of market volatilities on Global Partner and Park 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 Global Partner with a short position of Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partner and Park Hotels.
Diversification Opportunities for Global Partner and Park Hotels
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Park is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Global Partner Acq and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts and Global Partner 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 Global Partner Acq are associated (or correlated) with Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of Global Partner i.e., Global Partner and Park Hotels go up and down completely randomly.
Pair Corralation between Global Partner and Park Hotels
If you would invest 1,003 in Global Partner Acq on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Global Partner Acq or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Global Partner Acq vs. Park Hotels Resorts
Performance |
| Timeline |
| Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Park Hotels Resorts |
Global Partner and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Partner and Park Hotels
The main advantage of trading using opposite Global Partner and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partner position performs unexpectedly, Park 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| Global Partner vs. Gladstone Investment | Global Partner vs. Nascent Wine | Global Partner vs. Goosehead Insurance | Global Partner vs. China Tontine Wines |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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