Correlation Between Park Hotels and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Sandstorm Gold 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 Sandstorm Gold 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 Sandstorm Gold Ltd, you can compare the effects of market volatilities on Park Hotels and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Sandstorm Gold.
Diversification Opportunities for Park Hotels and Sandstorm Gold
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Park and Sandstorm is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Park Hotels i.e., Park Hotels and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Park Hotels and Sandstorm Gold
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 0.69 times more return on investment than Sandstorm Gold. However, Park Hotels Resorts is 1.45 times less risky than Sandstorm Gold. It trades about 0.24 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about -0.06 per unit of risk. If you would invest 1,406 in Park Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 149.00 from holding Park Hotels Resorts or generate 10.6% 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. Sandstorm Gold Ltd
Performance |
| Timeline |
| Park Hotels Resorts |
| Sandstorm Gold |
Park Hotels and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Sandstorm Gold
The main advantage of trading using opposite Park Hotels and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold'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 |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. Osisko Gold Ro |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |