Correlation Between Marriott International and KFT
Can any of the company-specific risk be diversified away by investing in both Marriott International and KFT 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 Marriott International and KFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marriott International and KFT, you can compare the effects of market volatilities on Marriott International and KFT 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 Marriott International with a short position of KFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and KFT.
Diversification Opportunities for Marriott International and KFT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marriott and KFT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marriott International and KFT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KFT and Marriott International 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 Marriott International are associated (or correlated) with KFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KFT has no effect on the direction of Marriott International i.e., Marriott International and KFT go up and down completely randomly.
Pair Corralation between Marriott International and KFT
If you would invest 17,723 in Marriott International on January 17, 2024 and sell it today you would earn a total of 7,118 from holding Marriott International or generate 40.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marriott International vs. KFT
Performance |
| Timeline |
| Marriott International |
| KFT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marriott International and KFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marriott International and KFT
The main advantage of trading using opposite Marriott International and KFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marriott International position performs unexpectedly, KFT 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 KFT will offset losses from the drop in KFT's long position.| Marriott International vs. Yatra Online | Marriott International vs. Despegar Corp | Marriott International vs. Mondee Holdings | Marriott International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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