Correlation Between Hastings Technology and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Hastings Technology 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 Hastings Technology and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hastings Technology Metals and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Hastings Technology 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 Hastings Technology with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hastings Technology and Wyndham Hotels.
Diversification Opportunities for Hastings Technology and Wyndham Hotels
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hastings and Wyndham is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hastings Technology Metals 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 Hastings Technology 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 Hastings Technology Metals 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 Hastings Technology i.e., Hastings Technology and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Hastings Technology and Wyndham Hotels
Assuming the 90 days horizon Hastings Technology Metals is expected to generate 4.01 times more return on investment than Wyndham Hotels. However, Hastings Technology is 4.01 times more volatile than Wyndham Hotels Resorts. It trades about 0.07 of its potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.17 per unit of risk. If you would invest 14.00 in Hastings Technology Metals on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Hastings Technology Metals or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hastings Technology Metals vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Hastings Technology |
| Wyndham Hotels Resorts |
Hastings Technology and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hastings Technology and Wyndham Hotels
The main advantage of trading using opposite Hastings Technology and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hastings Technology 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.| Hastings Technology vs. CEOTRONICS | Hastings Technology vs. Cleanaway Waste Management | Hastings Technology vs. Sims Metal Management | Hastings Technology vs. Waste Management |
| Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. InterContinental Hotels Group | Wyndham Hotels vs. INTERCONT HOTELS | Wyndham Hotels vs. Choice Hotels International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |