Correlation Between Park Hotels and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Park Hotels and GEN Restaurant 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 GEN Restaurant 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 GEN Restaurant Group,, you can compare the effects of market volatilities on Park Hotels and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and GEN Restaurant.
Diversification Opportunities for Park Hotels and GEN Restaurant
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Park and GEN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Park Hotels i.e., Park Hotels and GEN Restaurant go up and down completely randomly.
Pair Corralation between Park Hotels and GEN Restaurant
Allowing for the 90-day total investment horizon Park Hotels is expected to generate 24.31 times less return on investment than GEN Restaurant. But when comparing it to its historical volatility, Park Hotels Resorts is 25.53 times less risky than GEN Restaurant. It trades about 0.05 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in GEN Restaurant Group, on August 30, 2024 and sell it today you would earn a total of 822.00 from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Park Hotels Resorts vs. GEN Restaurant Group,
Performance |
| Timeline |
| Park Hotels Resorts |
| GEN Restaurant Group, |
Park Hotels and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and GEN Restaurant
The main advantage of trading using opposite Park Hotels and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant'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 |
| GEN Restaurant vs. Jack In The | GEN Restaurant vs. Potbelly Co | GEN Restaurant vs. Rave Restaurant Group |
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.
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