Correlation Between Park Hotels and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Host 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 Park Hotels and Host Hotels 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 Host Hotels Resorts, you can compare the effects of market volatilities on Park Hotels and Host 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 Park Hotels with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Host Hotels.
Diversification Opportunities for Park Hotels and Host Hotels
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Park and Host is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts 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 Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Park Hotels i.e., Park Hotels and Host Hotels go up and down completely randomly.
Pair Corralation between Park Hotels and Host Hotels
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 1.28 times more return on investment than Host Hotels. However, Park Hotels is 1.28 times more volatile than Host Hotels Resorts. It trades about 0.06 of its potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.03 per unit of risk. If you would invest 960.00 in Park Hotels Resorts on August 28, 2024 and sell it today you would earn a total of 590.00 from holding Park Hotels Resorts or generate 61.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Host Hotels Resorts
Performance |
| Timeline |
| Park Hotels Resorts |
| Host Hotels Resorts |
Park Hotels and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Host Hotels
The main advantage of trading using opposite Park Hotels and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Host 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 Host Hotels will offset losses from the drop in Host Hotels' 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 |
| Host Hotels vs. Service Properties Trust | Host Hotels vs. Diamondrock Hospitality | Host Hotels vs. Sunstone Hotel Investors | Host Hotels vs. Ryman Hospitality Properties |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |