Correlation Between Playa Hotels and Sonder Holdings
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Sonder 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 Sonder 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 Sonder Holdings, you can compare the effects of market volatilities on Playa Hotels and Sonder 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 Sonder Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Sonder Holdings.
Diversification Opportunities for Playa Hotels and Sonder Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playa and Sonder is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder 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 Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of Playa Hotels i.e., Playa Hotels and Sonder Holdings go up and down completely randomly.
Pair Corralation between Playa Hotels and Sonder Holdings
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.17 times more return on investment than Sonder Holdings. However, Playa Hotels Resorts is 5.99 times less risky than Sonder Holdings. It trades about 0.06 of its potential returns per unit of risk. Sonder Holdings is currently generating about 0.01 per unit of risk. If you would invest 612.00 in Playa Hotels Resorts on September 3, 2024 and sell it today you would earn a total of 367.00 from holding Playa Hotels Resorts or generate 59.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Sonder Holdings
Performance |
| Timeline |
| Playa Hotels Resorts |
| Sonder Holdings |
Playa Hotels and Sonder Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Sonder Holdings
The main advantage of trading using opposite Playa Hotels and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Sonder 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges |