Correlation Between Playa Hotels and GRUPO
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By analyzing existing cross correlation between Playa Hotels Resorts and GRUPO TELEVISA S, you can compare the effects of market volatilities on Playa Hotels and GRUPO 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 GRUPO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and GRUPO.
Diversification Opportunities for Playa Hotels and GRUPO
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playa and GRUPO is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and GRUPO TELEVISA S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO TELEVISA S 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 GRUPO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO TELEVISA S has no effect on the direction of Playa Hotels i.e., Playa Hotels and GRUPO go up and down completely randomly.
Pair Corralation between Playa Hotels and GRUPO
Given the investment horizon of 90 days Playa Hotels is expected to generate 1.78 times less return on investment than GRUPO. But when comparing it to its historical volatility, Playa Hotels Resorts is 2.1 times less risky than GRUPO. It trades about 0.29 of its potential returns per unit of risk. GRUPO TELEVISA S is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 9,123 in GRUPO TELEVISA S on August 28, 2024 and sell it today you would earn a total of 979.00 from holding GRUPO TELEVISA S or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Playa Hotels Resorts vs. GRUPO TELEVISA S
Performance |
| Timeline |
| Playa Hotels Resorts |
| GRUPO TELEVISA S |
Playa Hotels and GRUPO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and GRUPO
The main advantage of trading using opposite Playa Hotels and GRUPO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, GRUPO 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 GRUPO will offset losses from the drop in GRUPO's long position.| Playa Hotels vs. Yatra Online | Playa Hotels vs. Mondee Holdings | Playa Hotels vs. TripAdvisor | Playa Hotels vs. Thayer Ventures Acquisition |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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