Correlation Between Marriott International and TravelCenters
Can any of the company-specific risk be diversified away by investing in both Marriott International and TravelCenters 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 Marriott International and TravelCenters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marriott International and TravelCenters Of America, you can compare the effects of market volatilities on Marriott International and TravelCenters 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 Marriott International with a short position of TravelCenters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and TravelCenters.
Diversification Opportunities for Marriott International and TravelCenters
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marriott and TravelCenters is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marriott International and TravelCenters Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TravelCenters Of America and Marriott International 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 Marriott International are associated (or correlated) with TravelCenters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TravelCenters Of America has no effect on the direction of Marriott International i.e., Marriott International and TravelCenters go up and down completely randomly.
Pair Corralation between Marriott International and TravelCenters
If you would invest 26,330 in Marriott International on August 30, 2024 and sell it today you would earn a total of 2,230 from holding Marriott International or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Marriott International vs. TravelCenters Of America
Performance |
| Timeline |
| Marriott International |
| TravelCenters Of America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marriott International and TravelCenters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marriott International and TravelCenters
The main advantage of trading using opposite Marriott International and TravelCenters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marriott International position performs unexpectedly, TravelCenters 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 TravelCenters will offset losses from the drop in TravelCenters' long position.| Marriott International vs. Hyatt Hotels | Marriott International vs. InterContinental Hotels Group | Marriott International vs. Choice Hotels International | Marriott International vs. Wyndham Hotels Resorts |
| TravelCenters vs. B Riley Financial | TravelCenters vs. Sotherly Hotels Series | TravelCenters vs. B Riley Financial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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