Correlation Between Playa Hotels and Gelesis Holdings
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Gelesis Holdings 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 Gelesis Holdings 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 Gelesis Holdings, you can compare the effects of market volatilities on Playa Hotels and Gelesis Holdings 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 Gelesis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Gelesis Holdings.
Diversification Opportunities for Playa Hotels and Gelesis Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and Gelesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Gelesis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelesis Holdings 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 Gelesis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelesis Holdings has no effect on the direction of Playa Hotels i.e., Playa Hotels and Gelesis Holdings go up and down completely randomly.
Pair Corralation between Playa Hotels and Gelesis Holdings
If you would invest 846.00 in Playa Hotels Resorts on August 30, 2024 and sell it today you would earn a total of 123.00 from holding Playa Hotels Resorts or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Gelesis Holdings
Performance |
| Timeline |
| Playa Hotels Resorts |
| Gelesis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Playa Hotels and Gelesis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Gelesis Holdings
The main advantage of trading using opposite Playa Hotels and Gelesis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Gelesis Holdings 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 Gelesis Holdings will offset losses from the drop in Gelesis Holdings' long position.| Playa Hotels vs. Yatra Online | Playa Hotels vs. Despegar Corp | Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited |
| Gelesis Holdings vs. Digi International | Gelesis Holdings vs. Playa Hotels Resorts | Gelesis Holdings vs. Sphere Entertainment Co | Gelesis Holdings vs. WiMi Hologram Cloud |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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