Correlation Between Park Hotels and Hastings Technology

Can any of the company-specific risk be diversified away by investing in both Park Hotels and Hastings Technology 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 Park Hotels and Hastings Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Park Hotels Resorts and Hastings Technology Metals, you can compare the effects of market volatilities on Park Hotels and Hastings Technology 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 Park Hotels with a short position of Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Hastings Technology.

Diversification Opportunities for Park Hotels and Hastings Technology

0.19

Correlation Coefficient

Park Hotels  Hastings Technology

Average diversification

The 3 months correlation between Park and Hastings is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology and Park 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 Park Hotels Resorts are associated (or correlated) with Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of Park Hotels i.e., Park Hotels and Hastings Technology go up and down completely randomly.

Pair Corralation between Park Hotels and Hastings Technology

Assuming the 90 days trading horizon Park Hotels Resorts is expected to under-perform the Hastings Technology. But the stock apears to be less risky and, when comparing its historical volatility, Park Hotels Resorts is 2.68 times less risky than Hastings Technology. The stock trades about -0.22 of its potential returns per unit of risk. The Hastings Technology Metals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  18.00  in Hastings Technology Metals on December 29, 2024 and sell it today you would lose (1.00) from holding Hastings Technology Metals or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Park Hotels Resorts  vs.  Hastings Technology Metals

Park Hotels Resorts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Park Hotels Resorts 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.

Hastings Technology

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Park Hotels and Hastings Technology

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

The idea behind Park Hotels Resorts and Hastings Technology Metals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..