Correlation Between Park Hotels and AMERICAN
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By analyzing existing cross correlation between Park Hotels Resorts and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Park Hotels and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and AMERICAN.
Diversification Opportunities for Park Hotels and AMERICAN
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Park and AMERICAN is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Park Hotels i.e., Park Hotels and AMERICAN go up and down completely randomly.
Pair Corralation between Park Hotels and AMERICAN
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 3.1 times more return on investment than AMERICAN. However, Park Hotels is 3.1 times more volatile than AMERICAN EXPRESS CR. It trades about 0.06 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about 0.01 per unit of risk. If you would invest 943.00 in Park Hotels Resorts on September 13, 2024 and sell it today you would earn a total of 618.00 from holding Park Hotels Resorts or generate 65.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.75% |
| Values | Daily Returns |
Park Hotels Resorts vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Park Hotels Resorts |
| AMERICAN EXPRESS |
Park Hotels and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and AMERICAN
The main advantage of trading using opposite Park Hotels and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. Hurco Companies | AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Xponential Fitness | AMERICAN vs. RCS MediaGroup SpA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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