Correlation Between Wyndham Hotels and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Wyndham Hotels and Coeur Mining 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 Wyndham Hotels and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wyndham Hotels Resorts and Coeur Mining, you can compare the effects of market volatilities on Wyndham Hotels and Coeur Mining 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 Wyndham Hotels with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wyndham Hotels and Coeur Mining.
Diversification Opportunities for Wyndham Hotels and Coeur Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wyndham and Coeur is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wyndham Hotels Resorts and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and Wyndham 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 Wyndham Hotels Resorts are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Wyndham Hotels i.e., Wyndham Hotels and Coeur Mining go up and down completely randomly.
Pair Corralation between Wyndham Hotels and Coeur Mining
Assuming the 90 days horizon Wyndham Hotels Resorts is expected to generate 1.56 times more return on investment than Coeur Mining. However, Wyndham Hotels is 1.56 times more volatile than Coeur Mining. It trades about 0.13 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.07 per unit of risk. If you would invest 9,164 in Wyndham Hotels Resorts on September 29, 2024 and sell it today you would earn a total of 386.00 from holding Wyndham Hotels Resorts or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wyndham Hotels Resorts vs. Coeur Mining
Performance |
| Timeline |
| Wyndham Hotels Resorts |
| Coeur Mining |
Wyndham Hotels and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wyndham Hotels and Coeur Mining
The main advantage of trading using opposite Wyndham Hotels and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wyndham Hotels position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Wyndham Hotels vs. Marriott International | Wyndham Hotels vs. H World Group | Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. InterContinental Hotels Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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