Correlation Between Atour Lifestyle and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Atour Lifestyle 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 Atour Lifestyle and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atour Lifestyle Holdings and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Atour Lifestyle 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 Atour Lifestyle with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atour Lifestyle and Wyndham Hotels.
Diversification Opportunities for Atour Lifestyle and Wyndham Hotels
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atour and Wyndham is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Atour Lifestyle Holdings 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 Atour Lifestyle 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 Atour Lifestyle Holdings 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 Atour Lifestyle i.e., Atour Lifestyle and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Atour Lifestyle and Wyndham Hotels
Given the investment horizon of 90 days Atour Lifestyle Holdings is expected to under-perform the Wyndham Hotels. In addition to that, Atour Lifestyle is 1.24 times more volatile than Wyndham Hotels Resorts. It trades about -0.11 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 8,927 in Wyndham Hotels Resorts on August 28, 2024 and sell it today you would earn a total of 842.00 from holding Wyndham Hotels Resorts or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atour Lifestyle Holdings vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Atour Lifestyle Holdings |
| Wyndham Hotels Resorts |
Atour Lifestyle and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atour Lifestyle and Wyndham Hotels
The main advantage of trading using opposite Atour Lifestyle and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atour Lifestyle 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.| Atour Lifestyle vs. InterContinental Hotels Group | Atour Lifestyle vs. GreenTree Hospitality Group | Atour Lifestyle vs. Hyatt Hotels | Atour Lifestyle vs. Choice Hotels International |
| Wyndham Hotels vs. InterContinental Hotels Group | Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. Hilton Worldwide Holdings | Wyndham Hotels vs. Marriott 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |