Correlation Between Park Hotels and Power Assets
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Power Assets 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 Power Assets 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 Power Assets Holdings, you can compare the effects of market volatilities on Park Hotels and Power Assets 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 Power Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Power Assets.
Diversification Opportunities for Park Hotels and Power Assets
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Park and Power is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Power Assets Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Assets Holdings 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 Power Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Assets Holdings has no effect on the direction of Park Hotels i.e., Park Hotels and Power Assets go up and down completely randomly.
Pair Corralation between Park Hotels and Power Assets
Assuming the 90 days trading horizon Park Hotels Resorts is expected to under-perform the Power Assets. In addition to that, Park Hotels is 1.62 times more volatile than Power Assets Holdings. It trades about -0.1 of its total potential returns per unit of risk. Power Assets Holdings is currently generating about 0.02 per unit of volatility. If you would invest 615.00 in Power Assets Holdings on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Power Assets Holdings or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Power Assets Holdings
Performance |
| Timeline |
| Park Hotels Resorts |
| Power Assets Holdings |
Park Hotels and Power Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Power Assets
The main advantage of trading using opposite Park Hotels and Power Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Power Assets 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 Power Assets will offset losses from the drop in Power Assets' long position.| Park Hotels vs. X FAB Silicon Foundries | Park Hotels vs. PKSHA TECHNOLOGY INC | Park Hotels vs. Sunny Optical Technology | Park Hotels vs. Lamar Advertising |
| Power Assets vs. ZINC MEDIA GR | Power Assets vs. SBM OFFSHORE | Power Assets vs. CHINA SOUTHN AIR H | Power Assets vs. GigaMedia |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |