Correlation Between Jhancock Real and Park Hotels
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Park 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 Jhancock Real and Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Real Estate and Park Hotels Resorts, you can compare the effects of market volatilities on Jhancock Real and Park 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 Jhancock Real with a short position of Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Park Hotels.
Diversification Opportunities for Jhancock Real and Park Hotels
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Park is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts and Jhancock Real 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 Jhancock Real Estate are associated (or correlated) with Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of Jhancock Real i.e., Jhancock Real and Park Hotels go up and down completely randomly.
Pair Corralation between Jhancock Real and Park Hotels
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 0.47 times more return on investment than Park Hotels. However, Jhancock Real Estate is 2.11 times less risky than Park Hotels. It trades about 0.18 of its potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.03 per unit of risk. If you would invest 1,127 in Jhancock Real Estate on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Jhancock Real Estate or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Park Hotels Resorts
Performance |
| Timeline |
| Jhancock Real Estate |
| Park Hotels Resorts |
Jhancock Real and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Park Hotels
The main advantage of trading using opposite Jhancock Real and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Park 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| Jhancock Real vs. Precious Metals And | Jhancock Real vs. Goldman Sachs Short | Jhancock Real vs. James Balanced Golden | Jhancock Real vs. Short Precious Metals |
| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. RLJ Lodging Trust |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |