Correlation Between Belmond and Marriott International
Can any of the company-specific risk be diversified away by investing in both Belmond and Marriott International 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 Belmond and Marriott International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belmond and Marriott International, you can compare the effects of market volatilities on Belmond and Marriott International 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 Belmond with a short position of Marriott International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belmond and Marriott International.
Diversification Opportunities for Belmond and Marriott International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Belmond and Marriott is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Belmond and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International and Belmond 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 Belmond are associated (or correlated) with Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of Belmond i.e., Belmond and Marriott International go up and down completely randomly.
Pair Corralation between Belmond and Marriott International
If you would invest 24,160 in Marriott International on January 26, 2024 and sell it today you would earn a total of 246.00 from holding Marriott International or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Belmond vs. Marriott International
Performance |
| Timeline |
| Belmond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marriott International |
Belmond and Marriott International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belmond and Marriott International
The main advantage of trading using opposite Belmond and Marriott International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belmond position performs unexpectedly, Marriott International 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 Marriott International will offset losses from the drop in Marriott International's long position.The idea behind Belmond and Marriott International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Marriott International vs. Hyatt Hotels | Marriott International vs. InterContinental Hotels Group | Marriott International vs. Choice Hotels International | Marriott International vs. Wyndham Hotels Resorts |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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