Correlation Between Hyatt Hotels and Tapestry
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels and Tapestry 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 Tapestry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and Tapestry, you can compare the effects of market volatilities on Hyatt Hotels and Tapestry 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 Tapestry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and Tapestry.
Diversification Opportunities for Hyatt Hotels and Tapestry
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hyatt and Tapestry is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels and Tapestry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tapestry 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 are associated (or correlated) with Tapestry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tapestry has no effect on the direction of Hyatt Hotels i.e., Hyatt Hotels and Tapestry go up and down completely randomly.
Pair Corralation between Hyatt Hotels and Tapestry
Taking into account the 90-day investment horizon Hyatt Hotels is expected to generate 2.03 times less return on investment than Tapestry. But when comparing it to its historical volatility, Hyatt Hotels is 1.22 times less risky than Tapestry. It trades about 0.21 of its potential returns per unit of risk. Tapestry is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 7,018 in Tapestry on May 1, 2025 and sell it today you would earn a total of 3,722 from holding Tapestry or generate 53.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyatt Hotels vs. Tapestry
Performance |
| Timeline |
| Hyatt Hotels |
| Tapestry |
Hyatt Hotels and Tapestry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and Tapestry
The main advantage of trading using opposite Hyatt Hotels and Tapestry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels position performs unexpectedly, Tapestry 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 Tapestry will offset losses from the drop in Tapestry's long position.| Hyatt Hotels vs. Marriott International | Hyatt Hotels vs. InterContinental Hotels Group | Hyatt Hotels vs. Choice Hotels International | Hyatt Hotels vs. Wyndham Hotels Resorts |
| Tapestry vs. Capri Holdings | Tapestry vs. Movado Group | Tapestry vs. Signet Jewelers | Tapestry vs. Lanvin Group Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |