Correlation Between Hongkong and Hilton Worldwide
Can any of the company-specific risk be diversified away by investing in both Hongkong and Hilton Worldwide 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 Hongkong and Hilton Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hongkong And and Hilton Worldwide Holdings, you can compare the effects of market volatilities on Hongkong and Hilton Worldwide 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 Hongkong with a short position of Hilton Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong and Hilton Worldwide.
Diversification Opportunities for Hongkong and Hilton Worldwide
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hongkong and Hilton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Hongkong And and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide Holdings and Hongkong 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 The Hongkong And are associated (or correlated) with Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of Hongkong i.e., Hongkong and Hilton Worldwide go up and down completely randomly.
Pair Corralation between Hongkong and Hilton Worldwide
If you would invest 23,633 in Hilton Worldwide Holdings on September 2, 2024 and sell it today you would earn a total of 1,711 from holding Hilton Worldwide Holdings or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Hongkong And vs. Hilton Worldwide Holdings
Performance |
| Timeline |
| Hongkong And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hilton Worldwide Holdings |
Hongkong and Hilton Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongkong and Hilton Worldwide
The main advantage of trading using opposite Hongkong and Hilton Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong position performs unexpectedly, Hilton Worldwide 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 Hilton Worldwide will offset losses from the drop in Hilton Worldwide's long position.| Hongkong vs. Hilton Worldwide Holdings | Hongkong vs. InterContinental Hotels Group | Hongkong vs. Marriott International | Hongkong vs. Choice Hotels International |
| Hilton Worldwide vs. Hyatt Hotels | Hilton Worldwide vs. Wyndham Hotels Resorts | Hilton Worldwide vs. Choice Hotels International | Hilton Worldwide vs. InterContinental Hotels 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |