Correlation Between Everi Holdings and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Everi Holdings 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 Everi Holdings and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Everi Holdings 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 Everi Holdings with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Wyndham Hotels.
Diversification Opportunities for Everi Holdings and Wyndham Hotels
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Everi and Wyndham is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Everi 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 Everi Holdings 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 Everi 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 Everi Holdings i.e., Everi Holdings and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Everi Holdings and Wyndham Hotels
Given the investment horizon of 90 days Everi Holdings is expected to generate 9.85 times less return on investment than Wyndham Hotels. But when comparing it to its historical volatility, Everi Holdings is 8.59 times less risky than Wyndham Hotels. It trades about 0.22 of its potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 8,895 in Wyndham Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 866.00 from holding Wyndham Hotels Resorts or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Everi Holdings |
| Wyndham Hotels Resorts |
Everi Holdings and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Wyndham Hotels
The main advantage of trading using opposite Everi Holdings and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings 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.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |