Correlation Between Playa Hotels and SUPER HI
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and SUPER HI 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 SUPER HI 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 SUPER HI INTERNATIONAL, you can compare the effects of market volatilities on Playa Hotels and SUPER HI 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 SUPER HI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and SUPER HI.
Diversification Opportunities for Playa Hotels and SUPER HI
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playa and SUPER is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and SUPER HI INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER HI INTERNATIONAL 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 SUPER HI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER HI INTERNATIONAL has no effect on the direction of Playa Hotels i.e., Playa Hotels and SUPER HI go up and down completely randomly.
Pair Corralation between Playa Hotels and SUPER HI
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.39 times more return on investment than SUPER HI. However, Playa Hotels Resorts is 2.54 times less risky than SUPER HI. It trades about 0.07 of its potential returns per unit of risk. SUPER HI INTERNATIONAL is currently generating about 0.0 per unit of risk. If you would invest 794.00 in Playa Hotels Resorts on September 4, 2024 and sell it today you would earn a total of 215.00 from holding Playa Hotels Resorts or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.87% |
| Values | Daily Returns |
Playa Hotels Resorts vs. SUPER HI INTERNATIONAL
Performance |
| Timeline |
| Playa Hotels Resorts |
| SUPER HI INTERNATIONAL |
Playa Hotels and SUPER HI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and SUPER HI
The main advantage of trading using opposite Playa Hotels and SUPER HI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, SUPER HI 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 SUPER HI will offset losses from the drop in SUPER HI's long position.| Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited | Playa Hotels vs. TripAdvisor | Playa Hotels vs. Thayer Ventures Acquisition |
| SUPER HI vs. Global E Online | SUPER HI vs. CarsalesCom Ltd ADR | SUPER HI vs. Xunlei Ltd Adr | SUPER HI vs. Broadstone Net Lease |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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