Correlation Between Magna International and HYATT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Magna International and HYATT HOTELS P, you can compare the effects of market volatilities on Magna International and HYATT 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 Magna International with a short position of HYATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and HYATT.
Diversification Opportunities for Magna International and HYATT
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Magna and HYATT is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and HYATT HOTELS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS P and Magna 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 Magna International are associated (or correlated) with HYATT. 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 P has no effect on the direction of Magna International i.e., Magna International and HYATT go up and down completely randomly.
Pair Corralation between Magna International and HYATT
Considering the 90-day investment horizon Magna International is expected to under-perform the HYATT. In addition to that, Magna International is 2.74 times more volatile than HYATT HOTELS P. It trades about -0.03 of its total potential returns per unit of risk. HYATT HOTELS P is currently generating about 0.01 per unit of volatility. If you would invest 9,605 in HYATT HOTELS P on January 15, 2025 and sell it today you would earn a total of 129.00 from holding HYATT HOTELS P or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.18% |
| Values | Daily Returns |
Magna International vs. HYATT HOTELS P
Performance |
| Timeline |
| Magna International |
| HYATT HOTELS P |
Magna International and HYATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and HYATT
The main advantage of trading using opposite Magna International and HYATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, HYATT 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 will offset losses from the drop in HYATT's long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |