Correlation Between Hyatt Hotels and Intergroup
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and Intergroup 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 Hyatt Hotels and Intergroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and The Intergroup, you can compare the effects of market volatilities on Hyatt Hotels and Intergroup 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 Hyatt Hotels with a short position of Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and Intergroup.
Diversification Opportunities for Hyatt Hotels and Intergroup
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyatt and Intergroup is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and Hyatt Hotels 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 Hyatt Hotels are associated (or correlated) with Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and Intergroup go up and down completely randomly.
Pair Corralation between Hyatt Hotels and Intergroup
Taking into account the 90-day investment horizon Hyatt Hotels is expected to under-perform the Intergroup. But the stock apears to be less risky and, when comparing its historical volatility, Hyatt Hotels is 3.61 times less risky than Intergroup. The stock trades about -0.23 of its potential returns per unit of risk. The The Intergroup is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,087 in The Intergroup on February 1, 2024 and sell it today you would lose (24.00) from holding The Intergroup or give up 1.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hyatt Hotels vs. The Intergroup
Performance |
Timeline |
Hyatt Hotels |
Intergroup |
Hyatt Hotels and Intergroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyatt Hotels and Intergroup
The main advantage of trading using opposite Hyatt Hotels and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, Intergroup 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 Intergroup will offset losses from the drop in Intergroup's long position.Hyatt Hotels vs. Yatra Online | Hyatt Hotels vs. Despegar Corp | Hyatt Hotels vs. Mondee Holdings | Hyatt Hotels vs. MakeMyTrip Limited |
Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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