Correlation Between Viking Holdings and Hilton Grand

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

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

Diversification Opportunities for Viking Holdings and Hilton Grand

0.89

Correlation Coefficient

Viking Holdings  Hilton Grand

Very poor diversification

The 3 months correlation between Viking and Hilton is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Viking Holdings and Hilton Grand Vacations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Grand Vacations and Viking Holdings 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 Viking Holdings are associated (or correlated) with Hilton Grand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Grand Vacations has no effect on the direction of Viking Holdings i.e., Viking Holdings and Hilton Grand go up and down completely randomly.

Pair Corralation between Viking Holdings and Hilton Grand

Considering the 90-day investment horizon Viking Holdings is expected to under-perform the Hilton Grand. In addition to that, Viking Holdings is 1.06 times more volatile than Hilton Grand Vacations. It trades about -0.03 of its total potential returns per unit of risk. Hilton Grand Vacations is currently generating about -0.01 per unit of volatility. If you would invest  3,907  in Hilton Grand Vacations on December 28, 2024 and sell it today you would lose (120.00) from holding Hilton Grand Vacations or give up 3.07% of portfolio value over 90 days.

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

Viking Holdings  vs.  Hilton Grand Vacations

Viking Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viking Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Viking Holdings is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Hilton Grand Vacations

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hilton Grand Vacations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Hilton Grand is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Viking Holdings and Hilton Grand

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

The idea behind Viking Holdings and Hilton Grand Vacations 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.