Correlation Between Calumet and Playa Hotels
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By analyzing existing cross correlation between Calumet Specialty Products and Playa Hotels Resorts, you can compare the effects of market volatilities on Calumet and Playa 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 Calumet with a short position of Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet and Playa Hotels.
Diversification Opportunities for Calumet and Playa Hotels
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calumet and Playa is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Playa Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playa Hotels Resorts and Calumet 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 Calumet Specialty Products are associated (or correlated) with Playa Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playa Hotels Resorts has no effect on the direction of Calumet i.e., Calumet and Playa Hotels go up and down completely randomly.
Pair Corralation between Calumet and Playa Hotels
Assuming the 90 days trading horizon Calumet is expected to generate 1.78 times less return on investment than Playa Hotels. But when comparing it to its historical volatility, Calumet Specialty Products is 3.8 times less risky than Playa Hotels. It trades about 0.15 of its potential returns per unit of risk. Playa Hotels Resorts is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Playa Hotels Resorts on August 30, 2024 and sell it today you would earn a total of 123.00 from holding Playa Hotels Resorts or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.95% |
| Values | Daily Returns |
Calumet Specialty Products vs. Playa Hotels Resorts
Performance |
| Timeline |
| Calumet Specialty |
| Playa Hotels Resorts |
Calumet and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calumet and Playa Hotels
The main advantage of trading using opposite Calumet and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet position performs unexpectedly, Playa 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 Playa Hotels will offset losses from the drop in Playa Hotels' long position.| Calumet vs. Playa Hotels Resorts | Calumet vs. Mink Therapeutics | Calumet vs. Abcellera Biologics | Calumet vs. RCI Hospitality Holdings |
| Playa Hotels vs. Yatra Online | Playa Hotels vs. Despegar Corp | Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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