Correlation Between KION Group and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both KION Group and HYATT 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 KION Group and HYATT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KION Group AG and HYATT HOTELS A, you can compare the effects of market volatilities on KION Group and HYATT 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 KION Group with a short position of HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KION Group and HYATT HOTELS.
Diversification Opportunities for KION Group and HYATT HOTELS
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KION and HYATT is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A and KION Group 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 KION Group AG are associated (or correlated) with HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of KION Group i.e., KION Group and HYATT HOTELS go up and down completely randomly.
Pair Corralation between KION Group and HYATT HOTELS
Assuming the 90 days horizon KION Group AG is expected to generate 2.62 times more return on investment than HYATT HOTELS. However, KION Group is 2.62 times more volatile than HYATT HOTELS A. It trades about 0.19 of its potential returns per unit of risk. HYATT HOTELS A is currently generating about 0.15 per unit of risk. If you would invest 3,120 in KION Group AG on October 21, 2024 and sell it today you would earn a total of 263.00 from holding KION Group AG or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KION Group AG vs. HYATT HOTELS A
Performance |
| Timeline |
| KION Group AG |
| HYATT HOTELS A |
KION Group and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KION Group and HYATT HOTELS
The main advantage of trading using opposite KION Group and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group position performs unexpectedly, HYATT 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| KION Group vs. AB Volvo | KION Group vs. PACCAR Inc | KION Group vs. Sinotruk Limited | KION Group vs. Wabash National |
| HYATT HOTELS vs. ZhongAn Online P | HYATT HOTELS vs. Gruppo Mutuionline SpA | HYATT HOTELS vs. Pembina Pipeline Corp | HYATT HOTELS vs. CARSALESCOM |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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