Correlation Between Playa Hotels and KIMCO
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By analyzing existing cross correlation between Playa Hotels Resorts and KIMCO RLTY P, you can compare the effects of market volatilities on Playa Hotels and KIMCO 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 KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and KIMCO.
Diversification Opportunities for Playa Hotels and KIMCO
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Playa and KIMCO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Playa Hotels i.e., Playa Hotels and KIMCO go up and down completely randomly.
Pair Corralation between Playa Hotels and KIMCO
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.44 times more return on investment than KIMCO. However, Playa Hotels Resorts is 2.25 times less risky than KIMCO. It trades about 0.11 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.15 per unit of risk. If you would invest 975.00 in Playa Hotels Resorts on September 13, 2024 and sell it today you would earn a total of 27.00 from holding Playa Hotels Resorts or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Playa Hotels Resorts vs. KIMCO RLTY P
Performance |
| Timeline |
| Playa Hotels Resorts |
| KIMCO RLTY P |
Playa Hotels and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and KIMCO
The main advantage of trading using opposite Playa Hotels and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, KIMCO 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 KIMCO will offset losses from the drop in KIMCO's long position.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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