Correlation Between Park Hotels and Ping An
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on Park Hotels and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Ping An.
Diversification Opportunities for Park Hotels and Ping An
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Park and Ping is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Park Hotels i.e., Park Hotels and Ping An go up and down completely randomly.
Pair Corralation between Park Hotels and Ping An
Assuming the 90 days trading horizon Park Hotels Resorts is expected to generate 1.01 times more return on investment than Ping An. However, Park Hotels is 1.01 times more volatile than Ping An Insurance. It trades about -0.09 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.23 per unit of risk. If you would invest 1,341 in Park Hotels Resorts on October 24, 2024 and sell it today you would lose (41.00) from holding Park Hotels Resorts or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Ping An Insurance
Performance |
| Timeline |
| Park Hotels Resorts |
| Ping An Insurance |
Park Hotels and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Ping An
The main advantage of trading using opposite Park Hotels and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Park Hotels vs. Tokyu Construction Co | Park Hotels vs. Sterling Construction | Park Hotels vs. Daito Trust Construction | Park Hotels vs. Ares Management Corp |
| Ping An vs. SWISS WATER DECAFFCOFFEE | Ping An vs. BOSTON BEER A | Ping An vs. National Beverage Corp | Ping An vs. Firan Technology Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |