Correlation Between Oasis Petroleum and Park Hotels
Can any of the company-specific risk be diversified away by investing in both Oasis Petroleum 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 Oasis Petroleum and Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Petroleum and Park Hotels Resorts, you can compare the effects of market volatilities on Oasis Petroleum 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 Oasis Petroleum with a short position of Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Petroleum and Park Hotels.
Diversification Opportunities for Oasis Petroleum and Park Hotels
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oasis and Park is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Petroleum 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 Oasis Petroleum 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 Oasis Petroleum 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 Oasis Petroleum i.e., Oasis Petroleum and Park Hotels go up and down completely randomly.
Pair Corralation between Oasis Petroleum and Park Hotels
Assuming the 90 days horizon Oasis Petroleum is expected to under-perform the Park Hotels. In addition to that, Oasis Petroleum is 1.56 times more volatile than Park Hotels Resorts. It trades about -0.06 of its total potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.05 per unit of volatility. If you would invest 1,251 in Park Hotels Resorts on September 14, 2024 and sell it today you would earn a total of 277.00 from holding Park Hotels Resorts or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.68% |
| Values | Daily Returns |
Oasis Petroleum vs. Park Hotels Resorts
Performance |
| Timeline |
| Oasis Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Park Hotels Resorts |
Oasis Petroleum and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Petroleum and Park Hotels
The main advantage of trading using opposite Oasis Petroleum and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Petroleum 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.| Oasis Petroleum vs. Park Hotels Resorts | Oasis Petroleum vs. Getty Realty | Oasis Petroleum vs. Bt Brands | Oasis Petroleum vs. Cardinal Health |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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