Correlation Between Playa Hotels and KEYCORP
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By analyzing existing cross correlation between Playa Hotels Resorts and KEYCORP MTN, you can compare the effects of market volatilities on Playa Hotels and KEYCORP 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 KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and KEYCORP.
Diversification Opportunities for Playa Hotels and KEYCORP
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playa and KEYCORP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and KEYCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MTN 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 KEYCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYCORP MTN has no effect on the direction of Playa Hotels i.e., Playa Hotels and KEYCORP go up and down completely randomly.
Pair Corralation between Playa Hotels and KEYCORP
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 1.91 times more return on investment than KEYCORP. However, Playa Hotels is 1.91 times more volatile than KEYCORP MTN. It trades about 0.22 of its potential returns per unit of risk. KEYCORP MTN is currently generating about -0.11 per unit of risk. If you would invest 769.00 in Playa Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 210.00 from holding Playa Hotels Resorts or generate 27.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Playa Hotels Resorts vs. KEYCORP MTN
Performance |
| Timeline |
| Playa Hotels Resorts |
| KEYCORP MTN |
Playa Hotels and KEYCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and KEYCORP
The main advantage of trading using opposite Playa Hotels and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, KEYCORP 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 KEYCORP will offset losses from the drop in KEYCORP's long position.| Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited | Playa Hotels vs. Tuniu Corp | Playa Hotels vs. TripAdvisor |
| KEYCORP vs. Minerals Technologies | KEYCORP vs. Sandstorm Gold Ltd | KEYCORP vs. Lipocine | KEYCORP vs. China Clean Energy |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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