Correlation Between Platinum Investment and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both Platinum Investment 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 Platinum Investment and Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and Hyatt Hotels, you can compare the effects of market volatilities on Platinum Investment 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 Platinum Investment with a short position of Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and Hyatt Hotels.
Diversification Opportunities for Platinum Investment and Hyatt Hotels
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and Hyatt is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels and Platinum Investment 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 Platinum Investment Management 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 has no effect on the direction of Platinum Investment i.e., Platinum Investment and Hyatt Hotels go up and down completely randomly.
Pair Corralation between Platinum Investment and Hyatt Hotels
Assuming the 90 days horizon Platinum Investment Management is expected to generate 2.36 times more return on investment than Hyatt Hotels. However, Platinum Investment is 2.36 times more volatile than Hyatt Hotels. It trades about 0.01 of its potential returns per unit of risk. Hyatt Hotels is currently generating about -0.08 per unit of risk. If you would invest 40.00 in Platinum Investment Management on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Platinum Investment Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. Hyatt Hotels
Performance |
| Timeline |
| Platinum Investment |
| Hyatt Hotels |
Platinum Investment and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and Hyatt Hotels
The main advantage of trading using opposite Platinum Investment and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment 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' long position.| Platinum Investment vs. SILICON LABORATOR | Platinum Investment vs. Siamgas And Petrochemicals | Platinum Investment vs. AIR PRODCHEMICALS | Platinum Investment vs. Cars Inc |
| Hyatt Hotels vs. PTT Global Chemical | Hyatt Hotels vs. Cognizant Technology Solutions | Hyatt Hotels vs. SCOTT TECHNOLOGY | Hyatt Hotels vs. Shin Etsu Chemical Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |