Correlation Between Host Hotels and Varta AG
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By analyzing existing cross correlation between Host Hotels Resorts and Varta AG, you can compare the effects of market volatilities on Host Hotels and Varta AG 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 Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and Varta AG.
Diversification Opportunities for Host Hotels and Varta AG
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Host and Varta is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta AG 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 Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of Host Hotels i.e., Host Hotels and Varta AG go up and down completely randomly.
Pair Corralation between Host Hotels and Varta AG
Assuming the 90 days horizon Host Hotels Resorts is expected to generate 0.2 times more return on investment than Varta AG. However, Host Hotels Resorts is 4.9 times less risky than Varta AG. It trades about 0.04 of its potential returns per unit of risk. Varta AG is currently generating about -0.01 per unit of risk. If you would invest 1,398 in Host Hotels Resorts on September 14, 2024 and sell it today you would earn a total of 382.00 from holding Host Hotels Resorts or generate 27.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. Varta AG
Performance |
| Timeline |
| Host Hotels Resorts |
| Varta AG |
Host Hotels and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and Varta AG
The main advantage of trading using opposite Host Hotels and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, Varta AG 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 Varta AG will offset losses from the drop in Varta AG's long position.| Host Hotels vs. MTI WIRELESS EDGE | Host Hotels vs. PICKN PAY STORES | Host Hotels vs. BJs Wholesale Club | Host Hotels vs. Fast Retailing Co |
| Varta AG vs. ATRYS HEALTH SA | Varta AG vs. YOOMA WELLNESS INC | Varta AG vs. Host Hotels Resorts | Varta AG vs. DALATA HOTEL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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