Correlation Between Playa Hotels and Kingsmen Creatives
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Kingsmen Creatives 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 Kingsmen Creatives 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 Kingsmen Creatives, you can compare the effects of market volatilities on Playa Hotels and Kingsmen Creatives 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 Kingsmen Creatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Kingsmen Creatives.
Diversification Opportunities for Playa Hotels and Kingsmen Creatives
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and Kingsmen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Kingsmen Creatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen Creatives 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 Kingsmen Creatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen Creatives has no effect on the direction of Playa Hotels i.e., Playa Hotels and Kingsmen Creatives go up and down completely randomly.
Pair Corralation between Playa Hotels and Kingsmen Creatives
If you would invest 1,305 in Playa Hotels Resorts on December 8, 2024 and sell it today you would earn a total of 28.00 from holding Playa Hotels Resorts or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Kingsmen Creatives
Performance |
| Timeline |
| Playa Hotels Resorts |
| Kingsmen Creatives |
Playa Hotels and Kingsmen Creatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Kingsmen Creatives
The main advantage of trading using opposite Playa Hotels and Kingsmen Creatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Kingsmen Creatives 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 Kingsmen Creatives will offset losses from the drop in Kingsmen Creatives' long position.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
| Kingsmen Creatives vs. Mesa Air Group | Kingsmen Creatives vs. Transcontinental Realty Investors | Kingsmen Creatives vs. Afya | Kingsmen Creatives vs. MGIC Investment Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |