Correlation Between PayPal Holdings and HOSPITALITY
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By analyzing existing cross correlation between PayPal Holdings and HOSPITALITY PPTYS TR, you can compare the effects of market volatilities on PayPal Holdings and HOSPITALITY 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 PayPal Holdings with a short position of HOSPITALITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and HOSPITALITY.
Diversification Opportunities for PayPal Holdings and HOSPITALITY
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PayPal and HOSPITALITY is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and HOSPITALITY PPTYS TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOSPITALITY PPTYS and PayPal Holdings 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 PayPal Holdings are associated (or correlated) with HOSPITALITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOSPITALITY PPTYS has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and HOSPITALITY go up and down completely randomly.
Pair Corralation between PayPal Holdings and HOSPITALITY
Given the investment horizon of 90 days PayPal Holdings is expected to generate 1.12 times more return on investment than HOSPITALITY. However, PayPal Holdings is 1.12 times more volatile than HOSPITALITY PPTYS TR. It trades about 0.16 of its potential returns per unit of risk. HOSPITALITY PPTYS TR is currently generating about 0.0 per unit of risk. If you would invest 6,064 in PayPal Holdings on September 12, 2024 and sell it today you would earn a total of 2,812 from holding PayPal Holdings or generate 46.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.4% |
| Values | Daily Returns |
PayPal Holdings vs. HOSPITALITY PPTYS TR
Performance |
| Timeline |
| PayPal Holdings |
| HOSPITALITY PPTYS |
PayPal Holdings and HOSPITALITY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and HOSPITALITY
The main advantage of trading using opposite PayPal Holdings and HOSPITALITY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, HOSPITALITY 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 HOSPITALITY will offset losses from the drop in HOSPITALITY's long position.| PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
| HOSPITALITY vs. Kaltura | HOSPITALITY vs. Pinterest | HOSPITALITY vs. Arrow Electronics | HOSPITALITY vs. Amkor Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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