Correlation Between HF SINCLAIR and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and HYATT 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 HF SINCLAIR and HYATT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF SINCLAIR P and HYATT HOTELS A, you can compare the effects of market volatilities on HF SINCLAIR and HYATT 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 HF SINCLAIR with a short position of HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and HYATT HOTELS.
Diversification Opportunities for HF SINCLAIR and HYATT HOTELS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and HYATT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A and HF SINCLAIR 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 HF SINCLAIR P are associated (or correlated) with HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and HYATT HOTELS go up and down completely randomly.
Pair Corralation between HF SINCLAIR and HYATT HOTELS
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the HYATT HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.0 times less risky than HYATT HOTELS. The stock trades about -0.06 of its potential returns per unit of risk. The HYATT HOTELS A is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 13,092 in HYATT HOTELS A on September 12, 2024 and sell it today you would earn a total of 1,953 from holding HYATT HOTELS A or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. HYATT HOTELS A
Performance |
| Timeline |
| HF SINCLAIR P |
| HYATT HOTELS A |
HF SINCLAIR and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and HYATT HOTELS
The main advantage of trading using opposite HF SINCLAIR and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, HYATT 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB | HF SINCLAIR vs. Norsk Hydro ASA | HF SINCLAIR vs. Reliance Steel Aluminum |
| HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc | HYATT HOTELS vs. Apple Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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