Correlation Between 36158FAD2 and Playa Hotels
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By analyzing existing cross correlation between GE GLOBAL INS and Playa Hotels Resorts, you can compare the effects of market volatilities on 36158FAD2 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 36158FAD2 with a short position of Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36158FAD2 and Playa Hotels.
Diversification Opportunities for 36158FAD2 and Playa Hotels
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 36158FAD2 and Playa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GE GLOBAL INS 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 36158FAD2 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 GE GLOBAL INS 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 36158FAD2 i.e., 36158FAD2 and Playa Hotels go up and down completely randomly.
Pair Corralation between 36158FAD2 and Playa Hotels
Assuming the 90 days trading horizon 36158FAD2 is expected to generate 5.44 times less return on investment than Playa Hotels. In addition to that, 36158FAD2 is 1.03 times more volatile than Playa Hotels Resorts. It trades about 0.01 of its total potential returns per unit of risk. Playa Hotels Resorts is currently generating about 0.07 per unit of volatility. If you would invest 794.00 in Playa Hotels Resorts on September 4, 2024 and sell it today you would earn a total of 215.00 from holding Playa Hotels Resorts or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 35.22% |
| Values | Daily Returns |
GE GLOBAL INS vs. Playa Hotels Resorts
Performance |
| Timeline |
| GE GLOBAL INS |
| Playa Hotels Resorts |
36158FAD2 and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36158FAD2 and Playa Hotels
The main advantage of trading using opposite 36158FAD2 and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36158FAD2 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.| 36158FAD2 vs. Cumberland Pharmaceuticals | 36158FAD2 vs. Lipocine | 36158FAD2 vs. Revolve Group LLC | 36158FAD2 vs. Akanda Corp |
| Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited | Playa Hotels vs. TripAdvisor | Playa Hotels vs. Thayer Ventures Acquisition |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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