Correlation Between Clairvest and Hilton Worldwide

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

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

Diversification Opportunities for Clairvest and Hilton Worldwide

0.88

Correlation Coefficient

Clairvest  Hilton Worldwide

Very poor diversification

The 3 months correlation between Clairvest and Hilton is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Clairvest Group and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide Holdings and Clairvest 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 Clairvest Group are associated (or correlated) with Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of Clairvest i.e., Clairvest and Hilton Worldwide go up and down completely randomly.

Pair Corralation between Clairvest and Hilton Worldwide

Assuming the 90 days trading horizon Clairvest is expected to generate 1.04 times less return on investment than Hilton Worldwide. But when comparing it to its historical volatility, Clairvest Group is 1.09 times less risky than Hilton Worldwide. It trades about 0.11 of its potential returns per unit of risk. Hilton Worldwide Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  24,150  in Hilton Worldwide Holdings on May 7, 2025 and sell it today you would earn a total of  2,092  from holding Hilton Worldwide Holdings or generate 8.66% return on investment over 90 days.

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

Clairvest Group  vs.  Hilton Worldwide Holdings

Clairvest Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Clairvest Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Clairvest may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Hilton Worldwide Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hilton Worldwide Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Hilton Worldwide may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Clairvest and Hilton Worldwide

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

The idea behind Clairvest Group and Hilton Worldwide 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.