Correlation Between Park Hotels and CINTAS
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By analyzing existing cross correlation between Park Hotels Resorts and CINTAS P NO, you can compare the effects of market volatilities on Park Hotels and CINTAS 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 CINTAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and CINTAS.
Diversification Opportunities for Park Hotels and CINTAS
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Park and CINTAS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and CINTAS P NO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINTAS P NO 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 CINTAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINTAS P NO has no effect on the direction of Park Hotels i.e., Park Hotels and CINTAS go up and down completely randomly.
Pair Corralation between Park Hotels and CINTAS
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 1.64 times more return on investment than CINTAS. However, Park Hotels is 1.64 times more volatile than CINTAS P NO. It trades about 0.22 of its potential returns per unit of risk. CINTAS P NO is currently generating about 0.17 per unit of risk. If you would invest 1,415 in Park Hotels Resorts on September 4, 2024 and sell it today you would earn a total of 123.00 from holding Park Hotels Resorts or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Park Hotels Resorts vs. CINTAS P NO
Performance |
| Timeline |
| Park Hotels Resorts |
| CINTAS P NO |
Park Hotels and CINTAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and CINTAS
The main advantage of trading using opposite Park Hotels and CINTAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, CINTAS 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 CINTAS will offset losses from the drop in CINTAS's long position.| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Service Properties Trust |
| CINTAS vs. Park Hotels Resorts | CINTAS vs. Ryman Hospitality Properties | CINTAS vs. TFI International | CINTAS vs. Lindblad Expeditions 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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