Correlation Between Park Hotels and Xtant Medical

Can any of the company-specific risk be diversified away by investing in both Park Hotels and Xtant Medical 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 Xtant Medical 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 Xtant Medical Holdings, you can compare the effects of market volatilities on Park Hotels and Xtant Medical 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 Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Xtant Medical.

Diversification Opportunities for Park Hotels and Xtant Medical

-0.71

Correlation Coefficient

Park Hotels  Xtant Medical

Pay attention - limited upside

The 3 months correlation between Park and Xtant is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings 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 Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of Park Hotels i.e., Park Hotels and Xtant Medical go up and down completely randomly.

Pair Corralation between Park Hotels and Xtant Medical

Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to under-perform the Xtant Medical. But the stock apears to be less risky and, when comparing its historical volatility, Park Hotels Resorts is 2.36 times less risky than Xtant Medical. The stock trades about 0.0 of its potential returns per unit of risk. The Xtant Medical Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Xtant Medical Holdings on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Xtant Medical Holdings or generate 0.0% return on investment over 90 days.

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

Park Hotels Resorts  vs.  Xtant Medical Holdings

Park Hotels Resorts

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Park Hotels Resorts are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Park Hotels is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Park Hotels and Xtant Medical

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

The idea behind Park Hotels Resorts and Xtant Medical Holdings 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.