Correlation Between GreenTree Hospitality and Atour Lifestyle
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality and Atour Lifestyle 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 GreenTree Hospitality and Atour Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenTree Hospitality Group and Atour Lifestyle Holdings, you can compare the effects of market volatilities on GreenTree Hospitality and Atour Lifestyle 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 GreenTree Hospitality with a short position of Atour Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Atour Lifestyle.
Diversification Opportunities for GreenTree Hospitality and Atour Lifestyle
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenTree and Atour is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and Atour Lifestyle Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atour Lifestyle Holdings and GreenTree Hospitality 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 GreenTree Hospitality Group are associated (or correlated) with Atour Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atour Lifestyle Holdings has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and Atour Lifestyle go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Atour Lifestyle
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to under-perform the Atour Lifestyle. In addition to that, GreenTree Hospitality is 1.2 times more volatile than Atour Lifestyle Holdings. It trades about -0.15 of its total potential returns per unit of risk. Atour Lifestyle Holdings is currently generating about -0.07 per unit of volatility. If you would invest 2,646 in Atour Lifestyle Holdings on August 24, 2024 and sell it today you would lose (111.00) from holding Atour Lifestyle Holdings or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GreenTree Hospitality Group vs. Atour Lifestyle Holdings
Performance |
| Timeline |
| GreenTree Hospitality |
| Atour Lifestyle Holdings |
GreenTree Hospitality and Atour Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTree Hospitality and Atour Lifestyle
The main advantage of trading using opposite GreenTree Hospitality and Atour Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality position performs unexpectedly, Atour Lifestyle 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 Atour Lifestyle will offset losses from the drop in Atour Lifestyle's long position.| GreenTree Hospitality vs. LuxUrban Hotels | GreenTree Hospitality vs. InterContinental Hotels Group | GreenTree Hospitality vs. Atour Lifestyle Holdings | GreenTree Hospitality vs. Huazhu Group |
| Atour Lifestyle vs. InterContinental Hotels Group | Atour Lifestyle vs. GreenTree Hospitality Group | Atour Lifestyle vs. Hyatt Hotels | Atour Lifestyle 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |