Correlation Between RadNet and Park Hotels
Can any of the company-specific risk be diversified away by investing in both RadNet and Park Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining RadNet and Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Park Hotels Resorts, you can compare the effects of market volatilities on RadNet and Park Hotels 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 RadNet with a short position of Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Park Hotels.
Diversification Opportunities for RadNet and Park Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RadNet and Park is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts and RadNet 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 RadNet Inc are associated (or correlated) with Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of RadNet i.e., RadNet and Park Hotels go up and down completely randomly.
Pair Corralation between RadNet and Park Hotels
Given the investment horizon of 90 days RadNet Inc is expected to generate 2.31 times more return on investment than Park Hotels. However, RadNet is 2.31 times more volatile than Park Hotels Resorts. It trades about 0.27 of its potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.29 per unit of risk. If you would invest 6,504 in RadNet Inc on September 1, 2024 and sell it today you would earn a total of 1,672 from holding RadNet Inc or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. Park Hotels Resorts
Performance |
| Timeline |
| RadNet Inc |
| Park Hotels Resorts |
RadNet and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Park Hotels
The main advantage of trading using opposite RadNet and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Park Hotels 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Sunstone Hotel Investors | Park Hotels vs. Host Hotels Resorts |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |