Correlation Between Starwood Hotels and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Starwood Hotels and Alibaba Group 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 Starwood Hotels and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starwood Hotels Resorts and Alibaba Group Holding, you can compare the effects of market volatilities on Starwood Hotels and Alibaba Group 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 Starwood Hotels with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starwood Hotels and Alibaba Group.
Diversification Opportunities for Starwood Hotels and Alibaba Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Starwood and Alibaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Starwood Hotels Resorts and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Starwood 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 Starwood Hotels Resorts are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Starwood Hotels i.e., Starwood Hotels and Alibaba Group go up and down completely randomly.
Pair Corralation between Starwood Hotels and Alibaba Group
If you would invest (100.00) in Starwood Hotels Resorts on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Starwood Hotels Resorts or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Starwood Hotels Resorts vs. Alibaba Group Holding
Performance |
| Timeline |
| Starwood Hotels Resorts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alibaba Group Holding |
Starwood Hotels and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starwood Hotels and Alibaba Group
The main advantage of trading using opposite Starwood Hotels and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starwood Hotels position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Starwood Hotels vs. Cars Inc | Starwood Hotels vs. Playtika Holding Corp | Starwood Hotels vs. UbiSoft Entertainment | Starwood Hotels vs. Shagrir Group Vehicle |
| Alibaba Group vs. Shoe Carnival | Alibaba Group vs. Hibbett Sports | Alibaba Group vs. Citi Trends | Alibaba Group vs. Zumiez Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |