Correlation Between Park Hotels and WELLTOWER
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By analyzing existing cross correlation between Park Hotels Resorts and WELLTOWER INC, you can compare the effects of market volatilities on Park Hotels and WELLTOWER 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 WELLTOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and WELLTOWER.
Diversification Opportunities for Park Hotels and WELLTOWER
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and WELLTOWER is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and WELLTOWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER INC 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC has no effect on the direction of Park Hotels i.e., Park Hotels and WELLTOWER go up and down completely randomly.
Pair Corralation between Park Hotels and WELLTOWER
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 3.41 times more return on investment than WELLTOWER. However, Park Hotels is 3.41 times more volatile than WELLTOWER INC. It trades about 0.3 of its potential returns per unit of risk. WELLTOWER INC is currently generating about 0.23 per unit of risk. If you would invest 1,384 in Park Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 171.00 from holding Park Hotels Resorts or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Park Hotels Resorts vs. WELLTOWER INC
Performance |
| Timeline |
| Park Hotels Resorts |
| WELLTOWER INC |
Park Hotels and WELLTOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and WELLTOWER
The main advantage of trading using opposite Park Hotels and WELLTOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, WELLTOWER 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 WELLTOWER will offset losses from the drop in WELLTOWER's long position.| Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Service Properties Trust | Park Hotels vs. RLJ Lodging Trust |
| WELLTOWER vs. Rocky Brands | WELLTOWER vs. Lincoln Electric Holdings | WELLTOWER vs. Pinterest | WELLTOWER vs. BCE Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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