Correlation Between Host Hotels and AWILCO DRILLING
Can any of the company-specific risk be diversified away by investing in both Host Hotels and AWILCO DRILLING 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 Host Hotels and AWILCO DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and AWILCO DRILLING PLC, you can compare the effects of market volatilities on Host Hotels and AWILCO DRILLING 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 Host Hotels with a short position of AWILCO DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and AWILCO DRILLING.
Diversification Opportunities for Host Hotels and AWILCO DRILLING
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Host and AWILCO is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and AWILCO DRILLING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AWILCO DRILLING PLC and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with AWILCO DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AWILCO DRILLING PLC has no effect on the direction of Host Hotels i.e., Host Hotels and AWILCO DRILLING go up and down completely randomly.
Pair Corralation between Host Hotels and AWILCO DRILLING
Assuming the 90 days horizon Host Hotels Resorts is expected to under-perform the AWILCO DRILLING. But the stock apears to be less risky and, when comparing its historical volatility, Host Hotels Resorts is 3.14 times less risky than AWILCO DRILLING. The stock trades about -0.06 of its potential returns per unit of risk. The AWILCO DRILLING PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 183.00 in AWILCO DRILLING PLC on November 6, 2024 and sell it today you would earn a total of 13.00 from holding AWILCO DRILLING PLC or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Host Hotels Resorts vs. AWILCO DRILLING PLC
Performance |
| Timeline |
| Host Hotels Resorts |
| AWILCO DRILLING PLC |
Host Hotels and AWILCO DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and AWILCO DRILLING
The main advantage of trading using opposite Host Hotels and AWILCO DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, AWILCO DRILLING 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 AWILCO DRILLING will offset losses from the drop in AWILCO DRILLING's long position.| Host Hotels vs. Playa Hotels Resorts | Host Hotels vs. Fast Retailing Co | Host Hotels vs. HYATT HOTELS A | Host Hotels vs. SCANSOURCE |
| AWILCO DRILLING vs. SIVERS SEMICONDUCTORS AB | AWILCO DRILLING vs. NorAm Drilling AS | AWILCO DRILLING vs. Volkswagen AG | AWILCO DRILLING vs. Darden Restaurants |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |