Correlation Between Park Hotels and GD Entertainment
Can any of the company-specific risk be diversified away by investing in both Park Hotels and GD Entertainment 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 Park Hotels and GD Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Hotels Resorts and GD Entertainment Technology, you can compare the effects of market volatilities on Park Hotels and GD Entertainment 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 Park Hotels with a short position of GD Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and GD Entertainment.
Diversification Opportunities for Park Hotels and GD Entertainment
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Park and GDET is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and GD Entertainment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Entertainment Tec and Park Hotels 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 Park Hotels Resorts are associated (or correlated) with GD Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Entertainment Tec has no effect on the direction of Park Hotels i.e., Park Hotels and GD Entertainment go up and down completely randomly.
Pair Corralation between Park Hotels and GD Entertainment
If you would invest 1,396 in Park Hotels Resorts on August 29, 2024 and sell it today you would earn a total of 140.00 from holding Park Hotels Resorts or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. GD Entertainment Technology
Performance |
| Timeline |
| Park Hotels Resorts |
| GD Entertainment Tec |
Park Hotels and GD Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and GD Entertainment
The main advantage of trading using opposite Park Hotels and GD Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, GD Entertainment 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 GD Entertainment will offset losses from the drop in GD Entertainment's long position.| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. Sunstone Hotel Investors |
| GD Entertainment vs. Chester Mining | GD Entertainment vs. Park Hotels Resorts | GD Entertainment vs. BJs Restaurants | GD Entertainment vs. Oasis Hotel Resort |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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