Correlation Between Wyndham Hotels and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Wyndham Hotels and Gecina SA 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 Gecina SA 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 Gecina SA, you can compare the effects of market volatilities on Wyndham Hotels and Gecina SA 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 Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wyndham Hotels and Gecina SA.
Diversification Opportunities for Wyndham Hotels and Gecina SA
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wyndham and Gecina is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wyndham Hotels Resorts and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA 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 Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Wyndham Hotels i.e., Wyndham Hotels and Gecina SA go up and down completely randomly.
Pair Corralation between Wyndham Hotels and Gecina SA
Assuming the 90 days horizon Wyndham Hotels Resorts is expected to generate 1.16 times more return on investment than Gecina SA. However, Wyndham Hotels is 1.16 times more volatile than Gecina SA. It trades about 0.09 of its potential returns per unit of risk. Gecina SA is currently generating about 0.01 per unit of risk. If you would invest 6,065 in Wyndham Hotels Resorts on October 24, 2024 and sell it today you would earn a total of 3,885 from holding Wyndham Hotels Resorts or generate 64.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wyndham Hotels Resorts vs. Gecina SA
Performance |
| Timeline |
| Wyndham Hotels Resorts |
| Gecina SA |
Wyndham Hotels and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wyndham Hotels and Gecina SA
The main advantage of trading using opposite Wyndham Hotels and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wyndham Hotels position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Wyndham Hotels vs. TT Electronics PLC | Wyndham Hotels vs. ELECTRONIC ARTS | Wyndham Hotels vs. Ultra Clean Holdings | Wyndham Hotels vs. ARROW ELECTRONICS |
| Gecina SA vs. GALENA MINING LTD | Gecina SA vs. NAKED WINES PLC | Gecina SA vs. Forsys Metals Corp | Gecina SA vs. MCEWEN MINING INC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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