Correlation Between Playa Hotels and SIMON
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By analyzing existing cross correlation between Playa Hotels Resorts and SIMON PPTY GROUP, you can compare the effects of market volatilities on Playa Hotels and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and SIMON.
Diversification Opportunities for Playa Hotels and SIMON
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playa and SIMON is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Playa Hotels i.e., Playa Hotels and SIMON go up and down completely randomly.
Pair Corralation between Playa Hotels and SIMON
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 1.78 times more return on investment than SIMON. However, Playa Hotels is 1.78 times more volatile than SIMON PPTY GROUP. It trades about 0.31 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about -0.05 per unit of risk. If you would invest 863.00 in Playa Hotels Resorts on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Playa Hotels Resorts or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Playa Hotels Resorts |
| SIMON PPTY GROUP |
Playa Hotels and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and SIMON
The main advantage of trading using opposite Playa Hotels and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON'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 Transaction History module to view history of all your transactions and understand their impact on performance.
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