Correlation Between Park Hotels and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Haier Smart 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 Park Hotels and Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Hotels Resorts and Haier Smart Home, you can compare the effects of market volatilities on Park Hotels and Haier Smart 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 Park Hotels with a short position of Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Haier Smart.
Diversification Opportunities for Park Hotels and Haier Smart
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Park and Haier is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home and Park 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 Park Hotels Resorts are associated (or correlated) with Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Park Hotels i.e., Park Hotels and Haier Smart go up and down completely randomly.
Pair Corralation between Park Hotels and Haier Smart
Assuming the 90 days trading horizon Park Hotels Resorts is expected to under-perform the Haier Smart. In addition to that, Park Hotels is 1.16 times more volatile than Haier Smart Home. It trades about -0.09 of its total potential returns per unit of risk. Haier Smart Home is currently generating about -0.01 per unit of volatility. If you would invest 180.00 in Haier Smart Home on October 29, 2024 and sell it today you would lose (1.00) from holding Haier Smart Home or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Haier Smart Home
Performance |
| Timeline |
| Park Hotels Resorts |
| Haier Smart Home |
Park Hotels and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Haier Smart
The main advantage of trading using opposite Park Hotels and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc |
| Haier Smart vs. Iridium Communications | Haier Smart vs. Air Transport Services | Haier Smart vs. SAFEROADS HLDGS | Haier Smart vs. Highlight Communications 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |