Correlation Between Playa Hotels and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and CHINA TONTINE 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 Playa Hotels and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playa Hotels Resorts and CHINA TONTINE WINES, you can compare the effects of market volatilities on Playa Hotels and CHINA TONTINE 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 Playa Hotels with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and CHINA TONTINE.
Diversification Opportunities for Playa Hotels and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and Playa 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 Playa Hotels Resorts are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Playa Hotels i.e., Playa Hotels and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Playa Hotels and CHINA TONTINE
If you would invest 945.00 in Playa Hotels Resorts on October 17, 2024 and sell it today you would earn a total of 245.00 from holding Playa Hotels Resorts or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Playa Hotels Resorts |
| CHINA TONTINE WINES |
Playa Hotels and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and CHINA TONTINE
The main advantage of trading using opposite Playa Hotels and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Playa Hotels vs. Reinsurance Group of | Playa Hotels vs. Zurich Insurance Group | Playa Hotels vs. QBE Insurance Group | Playa Hotels vs. GRENKELEASING Dusseldorf |
| CHINA TONTINE vs. COVIVIO HOTELS INH | CHINA TONTINE vs. Playa Hotels Resorts | CHINA TONTINE vs. Singapore Airlines Limited | CHINA TONTINE vs. MHP Hotel AG |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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