Correlation Between Hilton Worldwide and Stratasys
Can any of the company-specific risk be diversified away by investing in both Hilton Worldwide and Stratasys 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 Stratasys 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 Stratasys, you can compare the effects of market volatilities on Hilton Worldwide and Stratasys 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 Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Worldwide and Stratasys.
Diversification Opportunities for Hilton Worldwide and Stratasys
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hilton and Stratasys is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys 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 Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Hilton Worldwide i.e., Hilton Worldwide and Stratasys go up and down completely randomly.
Pair Corralation between Hilton Worldwide and Stratasys
Considering the 90-day investment horizon Hilton Worldwide Holdings is expected to generate 0.4 times more return on investment than Stratasys. However, Hilton Worldwide Holdings is 2.52 times less risky than Stratasys. It trades about 0.12 of its potential returns per unit of risk. Stratasys is currently generating about 0.01 per unit of risk. If you would invest 12,509 in Hilton Worldwide Holdings on September 12, 2024 and sell it today you would earn a total of 12,863 from holding Hilton Worldwide Holdings or generate 102.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Worldwide Holdings vs. Stratasys
Performance |
| Timeline |
| Hilton Worldwide Holdings |
| Stratasys |
Hilton Worldwide and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Worldwide and Stratasys
The main advantage of trading using opposite Hilton Worldwide and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' 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 |
| Stratasys vs. Victory Integrity Smallmid Cap | Stratasys vs. Hilton Worldwide Holdings | Stratasys vs. NVIDIA | Stratasys 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |