Correlation Between HYATT HOTELS-A and American Shipping

Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS-A and American Shipping 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-A and American Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HYATT HOTELS A and American Shipping, you can compare the effects of market volatilities on HYATT HOTELS-A and American Shipping 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-A with a short position of American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS-A and American Shipping.

Diversification Opportunities for HYATT HOTELS-A and American Shipping

0.0

Correlation Coefficient

HYATT HOTELS-A  American Shipping

Pay attention - limited upside

The 3 months correlation between HYATT and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shipping and HYATT HOTELS-A 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 A are associated (or correlated) with American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of HYATT HOTELS-A i.e., HYATT HOTELS-A and American Shipping go up and down completely randomly.

Pair Corralation between HYATT HOTELS-A and American Shipping

If you would invest  0.00  in American Shipping on December 22, 2024 and sell it today you would earn a total of  0.00  from holding American Shipping or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

HYATT HOTELS A  vs.  American Shipping

HYATT HOTELS A

Risk-Adjusted Performance

Very Weak

Over the last 90 days HYATT HOTELS A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

American Shipping

Risk-Adjusted Performance

Solid

Over the last 90 days American Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, American Shipping is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HYATT HOTELS-A and American Shipping

The main advantage of trading using opposite HYATT HOTELS-A and American Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS-A position performs unexpectedly, American Shipping 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 American Shipping will offset losses from the drop in American Shipping's long position.

The idea behind HYATT HOTELS A and American Shipping 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.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.