Correlation Between Playa Hotels and COMCAST
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By analyzing existing cross correlation between Playa Hotels Resorts and COMCAST P NEW, you can compare the effects of market volatilities on Playa Hotels and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and COMCAST.
Diversification Opportunities for Playa Hotels and COMCAST
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playa and COMCAST is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Playa Hotels i.e., Playa Hotels and COMCAST go up and down completely randomly.
Pair Corralation between Playa Hotels and COMCAST
Given the investment horizon of 90 days Playa Hotels is expected to generate 1.03 times less return on investment than COMCAST. But when comparing it to its historical volatility, Playa Hotels Resorts is 1.32 times less risky than COMCAST. It trades about 0.07 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,609 in COMCAST P NEW on September 4, 2024 and sell it today you would earn a total of 889.00 from holding COMCAST P NEW or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 43.32% |
| Values | Daily Returns |
Playa Hotels Resorts vs. COMCAST P NEW
Performance |
| Timeline |
| Playa Hotels Resorts |
| COMCAST P NEW |
Playa Hotels and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and COMCAST
The main advantage of trading using opposite Playa Hotels and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited | Playa Hotels vs. TripAdvisor | Playa Hotels vs. Thayer Ventures Acquisition |
| COMCAST vs. Integral Ad Science | COMCAST vs. Dolphin Entertainment | COMCAST vs. Meli Hotels International | COMCAST vs. Dennys 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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