Correlation Between Playa Hotels and Fluent
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on Playa Hotels and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Fluent.
Diversification Opportunities for Playa Hotels and Fluent
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playa and Fluent is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Playa Hotels i.e., Playa Hotels and Fluent go up and down completely randomly.
Pair Corralation between Playa Hotels and Fluent
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.37 times more return on investment than Fluent. However, Playa Hotels Resorts is 2.67 times less risky than Fluent. It trades about 0.22 of its potential returns per unit of risk. Fluent Inc is currently generating about 0.02 per unit of risk. If you would invest 769.00 in Playa Hotels Resorts on September 3, 2024 and sell it today you would earn a total of 210.00 from holding Playa Hotels Resorts or generate 27.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Fluent Inc
Performance |
| Timeline |
| Playa Hotels Resorts |
| Fluent Inc |
Playa Hotels and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Fluent
The main advantage of trading using opposite Playa Hotels and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |