Correlation Between Park Hotels and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Park Hotels and Wheeler Real 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 Wheeler Real 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 Wheeler Real Estate, you can compare the effects of market volatilities on Park Hotels and Wheeler Real 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Wheeler Real.
Diversification Opportunities for Park Hotels and Wheeler Real
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and Wheeler is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Park Hotels i.e., Park Hotels and Wheeler Real go up and down completely randomly.
Pair Corralation between Park Hotels and Wheeler Real
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to generate 0.41 times more return on investment than Wheeler Real. However, Park Hotels Resorts is 2.42 times less risky than Wheeler Real. It trades about 0.2 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.89 per unit of risk. If you would invest 1,396 in Park Hotels Resorts on August 27, 2024 and sell it today you would earn a total of 109.00 from holding Park Hotels Resorts or generate 7.81% 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. Wheeler Real Estate
Performance |
| Timeline |
| Park Hotels Resorts |
| Wheeler Real Estate |
Park Hotels and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Wheeler Real
The main advantage of trading using opposite Park Hotels and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real'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 |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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