Correlation Between Lundin Mining and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Wyndham Hotels 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 Lundin Mining and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining Corp and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Lundin Mining and Wyndham Hotels 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 Lundin Mining with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Wyndham Hotels.
Diversification Opportunities for Lundin Mining and Wyndham Hotels
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lundin and Wyndham is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Wyndham Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wyndham Hotels Resorts and Lundin Mining 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 Lundin Mining Corp are associated (or correlated) with Wyndham Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wyndham Hotels Resorts has no effect on the direction of Lundin Mining i.e., Lundin Mining and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Lundin Mining and Wyndham Hotels
Assuming the 90 days trading horizon Lundin Mining Corp is expected to under-perform the Wyndham Hotels. In addition to that, Lundin Mining is 2.47 times more volatile than Wyndham Hotels Resorts. It trades about -0.21 of its total potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.26 per unit of volatility. If you would invest 10,119 in Wyndham Hotels Resorts on November 7, 2024 and sell it today you would earn a total of 530.00 from holding Wyndham Hotels Resorts or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Lundin Mining Corp |
| Wyndham Hotels Resorts |
Lundin Mining and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Wyndham Hotels
The main advantage of trading using opposite Lundin Mining and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Wyndham Hotels 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 Wyndham Hotels will offset losses from the drop in Wyndham Hotels' long position.| Lundin Mining vs. United Airlines Holdings | Lundin Mining vs. Jacquet Metal Service | Lundin Mining vs. Cardinal Health | Lundin Mining vs. Coeur Mining |
| Wyndham Hotels vs. Samsung Electronics Co | Wyndham Hotels vs. Samsung Electronics Co | Wyndham Hotels vs. Toyota Motor Corp | Wyndham Hotels vs. Reliance Industries Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |