Correlation Between Hilton Worldwide and 3M
Can any of the company-specific risk be diversified away by investing in both Hilton Worldwide and 3M 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 Hilton Worldwide and 3M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Worldwide Holdings and 3M Company, you can compare the effects of market volatilities on Hilton Worldwide and 3M 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 Hilton Worldwide with a short position of 3M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Worldwide and 3M.
Diversification Opportunities for Hilton Worldwide and 3M
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hilton and 3M is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings and 3M Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M Company and Hilton Worldwide 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 Hilton Worldwide Holdings are associated (or correlated) with 3M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M Company has no effect on the direction of Hilton Worldwide i.e., Hilton Worldwide and 3M go up and down completely randomly.
Pair Corralation between Hilton Worldwide and 3M
Considering the 90-day investment horizon Hilton Worldwide Holdings is expected to generate 0.91 times more return on investment than 3M. However, Hilton Worldwide Holdings is 1.1 times less risky than 3M. It trades about 0.07 of its potential returns per unit of risk. 3M Company is currently generating about -0.07 per unit of risk. If you would invest 25,021 in Hilton Worldwide Holdings on September 12, 2024 and sell it today you would earn a total of 351.00 from holding Hilton Worldwide Holdings or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Worldwide Holdings vs. 3M Company
Performance |
| Timeline |
| Hilton Worldwide Holdings |
| 3M Company |
Hilton Worldwide and 3M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Worldwide and 3M
The main advantage of trading using opposite Hilton Worldwide and 3M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide position performs unexpectedly, 3M 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 3M will offset losses from the drop in 3M's long position.| Hilton Worldwide vs. Hyatt Hotels | Hilton Worldwide vs. Wyndham Hotels Resorts | Hilton Worldwide vs. Choice Hotels International | Hilton Worldwide vs. InterContinental Hotels Group |
| 3M vs. Victory Integrity Smallmid Cap | 3M vs. Hilton Worldwide Holdings | 3M vs. NVIDIA | 3M vs. JPMorgan Chase Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |