Correlation Between Hyatt Hotels and Marriot Int

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Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and Marriot Int 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 and Marriot Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels Corp and Marriot Int Cl, you can compare the effects of market volatilities on Hyatt Hotels and Marriot Int 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 with a short position of Marriot Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and Marriot Int.

Diversification Opportunities for Hyatt Hotels and Marriot Int

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Hyatt and Marriot is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels Corp and Marriot Int Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriot Int Cl and Hyatt 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 Hyatt Hotels Corp are associated (or correlated) with Marriot Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriot Int Cl has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and Marriot Int go up and down completely randomly.

Pair Corralation between Hyatt Hotels and Marriot Int

Taking into account the 90-day investment horizon Hyatt Hotels Corp is expected to generate 1.02 times more return on investment than Marriot Int. However, Hyatt Hotels is 1.02 times more volatile than Marriot Int Cl. It trades about -0.17 of its potential returns per unit of risk. Marriot Int Cl is currently generating about -0.25 per unit of risk. If you would invest  9,040  in Hyatt Hotels Corp on June 29, 2022 and sell it today you would lose (847.00)  from holding Hyatt Hotels Corp or give up 9.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.24%
ValuesDaily Returns

Hyatt Hotels Corp  vs.  Marriot Int Cl

 Performance (%) 
       Timeline  
Hyatt Hotels Corp 
Hyatt Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hyatt Hotels Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Hyatt Hotels may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Hyatt Price Channel

Marriot Int Cl 
Marriot Performance
0 of 100
Over the last 90 days Marriot Int Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Marriot Int is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Marriot Price Channel

Hyatt Hotels and Marriot Int Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hyatt Hotels and Marriot Int

The main advantage of trading using opposite Hyatt Hotels and Marriot Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, Marriot Int 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 Marriot Int will offset losses from the drop in Marriot Int's long position.
Hyatt Hotels vs. Kibush Capital Corp
The idea behind Hyatt Hotels Corp and Marriot Int Cl 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.
Marriot Int vs. Kibush Capital Corp
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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