Correlation Between Hilton Worldwide and Komercn Banka

Can any of the company-specific risk be diversified away by investing in both Hilton Worldwide and Komercn Banka 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 Hilton Worldwide and Komercn Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hilton Worldwide Holdings and Komercn banka as, you can compare the effects of market volatilities on Hilton Worldwide and Komercn Banka 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 Hilton Worldwide with a short position of Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Worldwide and Komercn Banka.

Diversification Opportunities for Hilton Worldwide and Komercn Banka

0.78

Correlation Coefficient

Hilton Worldwide  Komercn Banka

Poor diversification

The 3 months correlation between Hilton and Komercn is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and Hilton Worldwide 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 Hilton Worldwide Holdings are associated (or correlated) with Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of Hilton Worldwide i.e., Hilton Worldwide and Komercn Banka go up and down completely randomly.

Pair Corralation between Hilton Worldwide and Komercn Banka

Assuming the 90 days trading horizon Hilton Worldwide Holdings is expected to under-perform the Komercn Banka. But the stock apears to be less risky and, when comparing its historical volatility, Hilton Worldwide Holdings is 1.27 times less risky than Komercn Banka. The stock trades about -0.07 of its potential returns per unit of risk. The Komercn banka as is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,184  in Komercn banka as on September 23, 2024 and sell it today you would earn a total of  154.00  from holding Komercn banka as or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Hilton Worldwide Holdings  vs.  Komercn banka as

Hilton Worldwide Holdings

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hilton Worldwide Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hilton Worldwide reported solid returns over the last few months and may actually be approaching a breakup point.

Komercn banka as

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Komercn banka as are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Komercn Banka may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hilton Worldwide and Komercn Banka

The main advantage of trading using opposite Hilton Worldwide and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka's long position.

The idea behind Hilton Worldwide Holdings and Komercn banka as 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.