Correlation Between Mayfair Gold and Park Hotels
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold 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 Mayfair Gold and Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Park Hotels Resorts, you can compare the effects of market volatilities on Mayfair Gold 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 Mayfair Gold with a short position of Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Park Hotels.
Diversification Opportunities for Mayfair Gold and Park Hotels
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mayfair and Park is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp 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 Mayfair Gold 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 Mayfair Gold Corp 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 Mayfair Gold i.e., Mayfair Gold and Park Hotels go up and down completely randomly.
Pair Corralation between Mayfair Gold and Park Hotels
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the Park Hotels. In addition to that, Mayfair Gold is 1.16 times more volatile than Park Hotels Resorts. It trades about -0.46 of its total potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.25 per unit of volatility. If you would invest 1,406 in Park Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Park Hotels Resorts or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Park Hotels Resorts
Performance |
| Timeline |
| Mayfair Gold Corp |
| Park Hotels Resorts |
Mayfair Gold and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Park Hotels
The main advantage of trading using opposite Mayfair Gold and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold 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.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. Sunstone Hotel Investors |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |