Correlation Between Playa Hotels and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and VIAPLAY GROUP 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 VIAPLAY GROUP 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 VIAPLAY GROUP AB, you can compare the effects of market volatilities on Playa Hotels and VIAPLAY GROUP 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 VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and VIAPLAY GROUP.
Diversification Opportunities for Playa Hotels and VIAPLAY GROUP
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and VIAPLAY is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB 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 VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of Playa Hotels i.e., Playa Hotels and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between Playa Hotels and VIAPLAY GROUP
Assuming the 90 days horizon Playa Hotels Resorts is expected to generate 0.59 times more return on investment than VIAPLAY GROUP. However, Playa Hotels Resorts is 1.68 times less risky than VIAPLAY GROUP. It trades about 0.21 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.0 per unit of risk. If you would invest 790.00 in Playa Hotels Resorts on August 25, 2024 and sell it today you would earn a total of 120.00 from holding Playa Hotels Resorts or generate 15.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| Playa Hotels Resorts |
| VIAPLAY GROUP AB |
Playa Hotels and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and VIAPLAY GROUP
The main advantage of trading using opposite Playa Hotels and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| Playa Hotels vs. Sporttotal AG | Playa Hotels vs. Zijin Mining Group | Playa Hotels vs. Perseus Mining Limited | Playa Hotels vs. DICKS Sporting Goods |
| VIAPLAY GROUP vs. Uber Technologies | VIAPLAY GROUP vs. Tianjin Capital Environmental | VIAPLAY GROUP vs. GLG LIFE TECH | VIAPLAY GROUP vs. ZANAGA IRON ORE |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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