Correlation Between Park Hotels and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Park Hotels and YanGuFang International 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 YanGuFang International 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 YanGuFang International Group, you can compare the effects of market volatilities on Park Hotels and YanGuFang International 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 YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and YanGuFang International.
Diversification Opportunities for Park Hotels and YanGuFang International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and YanGuFang is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International 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 YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Park Hotels i.e., Park Hotels and YanGuFang International go up and down completely randomly.
Pair Corralation between Park Hotels and YanGuFang International
If you would invest 1,448 in Park Hotels Resorts on September 13, 2024 and sell it today you would earn a total of 107.50 from holding Park Hotels Resorts or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Park Hotels Resorts vs. YanGuFang International Group
Performance |
| Timeline |
| Park Hotels Resorts |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Park Hotels and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and YanGuFang International
The main advantage of trading using opposite Park Hotels and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International'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 |
| YanGuFang International vs. Jutal Offshore Oil | YanGuFang International vs. Pinterest | YanGuFang International vs. WT Offshore | YanGuFang International vs. Hudson Pacific Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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