Correlation Between Hong Kong and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Host 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 Hong Kong and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and Host Hotels Resorts, you can compare the effects of market volatilities on Hong Kong and Host 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 Hong Kong with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Host Hotels.
Diversification Opportunities for Hong Kong and Host Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Host is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts and Hong Kong 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 Hong Kong Land are associated (or correlated) with Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Hong Kong i.e., Hong Kong and Host Hotels go up and down completely randomly.
Pair Corralation between Hong Kong and Host Hotels
If you would invest 1,820 in Host Hotels Resorts on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Host Hotels Resorts or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Land vs. Host Hotels Resorts
Performance |
| Timeline |
| Hong Kong Land |
| Host Hotels Resorts |
Hong Kong and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Host Hotels
The main advantage of trading using opposite Hong Kong and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Host 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
| Host Hotels vs. Samsung Electronics Co | Host Hotels vs. Samsung Electronics Co | Host Hotels vs. Hyundai Motor | Host Hotels vs. Reliance Industries Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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