Correlation Between Park Hotels and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Konami Holdings 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 Konami Holdings 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 Konami Holdings, you can compare the effects of market volatilities on Park Hotels and Konami Holdings 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 Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Konami Holdings.
Diversification Opportunities for Park Hotels and Konami Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Park and Konami is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings 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 Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of Park Hotels i.e., Park Hotels and Konami Holdings go up and down completely randomly.
Pair Corralation between Park Hotels and Konami Holdings
If you would invest 1,406 in Park Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Park Hotels Resorts or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Park Hotels Resorts vs. Konami Holdings
Performance |
| Timeline |
| Park Hotels Resorts |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Park Hotels and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Konami Holdings
The main advantage of trading using opposite Park Hotels and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' 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 |
| Konami Holdings vs. Village Super Market | Konami Holdings vs. Park Hotels Resorts | Konami Holdings vs. Shake Shack | Konami Holdings vs. Celsius Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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