Correlation Between Playa Hotels and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Mapletree Logistics 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 Mapletree Logistics 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 Mapletree Logistics Trust, you can compare the effects of market volatilities on Playa Hotels and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Mapletree Logistics.
Diversification Opportunities for Playa Hotels and Mapletree Logistics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playa and Mapletree is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Playa Hotels i.e., Playa Hotels and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Playa Hotels and Mapletree Logistics
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.54 times more return on investment than Mapletree Logistics. However, Playa Hotels Resorts is 1.87 times less risky than Mapletree Logistics. It trades about 0.43 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about -0.31 per unit of risk. If you would invest 1,226 in Playa Hotels Resorts on December 2, 2024 and sell it today you would earn a total of 109.00 from holding Playa Hotels Resorts or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Playa Hotels Resorts |
| Mapletree Logistics Trust |
Playa Hotels and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Mapletree Logistics
The main advantage of trading using opposite Playa Hotels and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
| Mapletree Logistics vs. Village Super Market | Mapletree Logistics vs. Arhaus Inc | Mapletree Logistics vs. Keurig Dr Pepper | Mapletree Logistics vs. NH Foods Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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