Correlation Between Xinhua Winshare and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and HYATT 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 Xinhua Winshare and HYATT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and HYATT HOTELS A, you can compare the effects of market volatilities on Xinhua Winshare and HYATT 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 Xinhua Winshare with a short position of HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and HYATT HOTELS.
Diversification Opportunities for Xinhua Winshare and HYATT HOTELS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and HYATT is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and HYATT HOTELS go up and down completely randomly.
Pair Corralation between Xinhua Winshare and HYATT HOTELS
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the HYATT HOTELS. In addition to that, Xinhua Winshare is 2.24 times more volatile than HYATT HOTELS A. It trades about -0.17 of its total potential returns per unit of risk. HYATT HOTELS A is currently generating about -0.08 per unit of volatility. If you would invest 15,090 in HYATT HOTELS A on October 29, 2024 and sell it today you would lose (270.00) from holding HYATT HOTELS A or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. HYATT HOTELS A
Performance |
| Timeline |
| Xinhua Winshare Publ |
| HYATT HOTELS A |
Xinhua Winshare and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and HYATT HOTELS
The main advantage of trading using opposite Xinhua Winshare and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, HYATT 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| Xinhua Winshare vs. Telecom Argentina SA | Xinhua Winshare vs. Entravision Communications | Xinhua Winshare vs. Zoom Video Communications | Xinhua Winshare vs. HUTCHISON TELECOMM |
| HYATT HOTELS vs. Insurance Australia Group | HYATT HOTELS vs. DeVry Education Group | HYATT HOTELS vs. Xinhua Winshare Publishing | HYATT HOTELS vs. HANOVER INSURANCE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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