Correlation Between TH International and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both TH International 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 TH International and Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TH International Limited and Hyatt Hotels, you can compare the effects of market volatilities on TH International 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 TH International with a short position of Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of TH International and Hyatt Hotels.
Diversification Opportunities for TH International and Hyatt Hotels
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THCH and Hyatt is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TH International Limited and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels and TH International 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 TH International Limited 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 has no effect on the direction of TH International i.e., TH International and Hyatt Hotels go up and down completely randomly.
Pair Corralation between TH International and Hyatt Hotels
Given the investment horizon of 90 days TH International is expected to generate 2.71 times less return on investment than Hyatt Hotels. In addition to that, TH International is 4.98 times more volatile than Hyatt Hotels. It trades about 0.01 of its total potential returns per unit of risk. Hyatt Hotels is currently generating about 0.08 per unit of volatility. If you would invest 15,727 in Hyatt Hotels on September 12, 2024 and sell it today you would earn a total of 414.00 from holding Hyatt Hotels or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TH International Limited vs. Hyatt Hotels
Performance |
| Timeline |
| TH International |
| Hyatt Hotels |
TH International and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TH International and Hyatt Hotels
The main advantage of trading using opposite TH International and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TH International 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' long position.| TH International vs. Potbelly Co | TH International vs. El Pollo Loco | TH International vs. Dine Brands Global | TH International vs. One Group Hospitality |
| Hyatt Hotels vs. InterContinental Hotels Group | Hyatt Hotels vs. Hilton Worldwide Holdings | Hyatt Hotels vs. Choice Hotels International | Hyatt Hotels vs. Huazhu Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |