Correlation Between Park Hotels and Healthcare Realty
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Healthcare Realty 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 Healthcare Realty 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 Healthcare Realty Trust, you can compare the effects of market volatilities on Park Hotels and Healthcare Realty 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 Healthcare Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Healthcare Realty.
Diversification Opportunities for Park Hotels and Healthcare Realty
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and Healthcare is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Healthcare Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Realty Trust 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 Healthcare Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Realty Trust has no effect on the direction of Park Hotels i.e., Park Hotels and Healthcare Realty go up and down completely randomly.
Pair Corralation between Park Hotels and Healthcare Realty
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 0.99 times more return on investment than Healthcare Realty. However, Park Hotels Resorts is 1.01 times less risky than Healthcare Realty. It trades about 0.21 of its potential returns per unit of risk. Healthcare Realty Trust is currently generating about 0.01 per unit of risk. If you would invest 1,386 in Park Hotels Resorts on August 25, 2024 and sell it today you would earn a total of 119.00 from holding Park Hotels Resorts or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Healthcare Realty Trust
Performance |
| Timeline |
| Park Hotels Resorts |
| Healthcare Realty Trust |
Park Hotels and Healthcare Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Healthcare Realty
The main advantage of trading using opposite Park Hotels and Healthcare Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Healthcare Realty 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 Healthcare Realty will offset losses from the drop in Healthcare Realty's long position.| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. Host Hotels Resorts |
| Healthcare Realty vs. Healthpeak Properties | Healthcare Realty vs. Sabra Healthcare REIT | Healthcare Realty vs. Community Healthcare Trust | Healthcare Realty vs. Universal Health Realty |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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