Correlation Between Hyatt Hotels and International Game
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and International Game Technology, you can compare the effects of market volatilities on Hyatt Hotels and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and International Game.
Diversification Opportunities for Hyatt Hotels and International Game
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyatt and International is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and International Game go up and down completely randomly.
Pair Corralation between Hyatt Hotels and International Game
Taking into account the 90-day investment horizon Hyatt Hotels is expected to generate 0.79 times more return on investment than International Game. However, Hyatt Hotels is 1.26 times less risky than International Game. It trades about 0.06 of its potential returns per unit of risk. International Game Technology is currently generating about 0.0 per unit of risk. If you would invest 9,619 in Hyatt Hotels on September 5, 2024 and sell it today you would earn a total of 6,185 from holding Hyatt Hotels or generate 64.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyatt Hotels vs. International Game Technology
Performance |
| Timeline |
| Hyatt Hotels |
| International Game |
Hyatt Hotels and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and International Game
The main advantage of trading using opposite Hyatt Hotels and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Hyatt Hotels vs. Marriott International | Hyatt Hotels vs. InterContinental Hotels Group | Hyatt Hotels vs. Choice Hotels International | Hyatt Hotels vs. Wyndham Hotels Resorts |
| International Game vs. Hyatt Hotels | International Game vs. Smart Share Global | International Game vs. Sweetgreen | International Game vs. Wyndham Hotels Resorts |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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