Correlation Between GreenTree Hospitality and Intergroup
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality and Intergroup 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 Intergroup 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 The Intergroup, you can compare the effects of market volatilities on GreenTree Hospitality and Intergroup 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 Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Intergroup.
Diversification Opportunities for GreenTree Hospitality and Intergroup
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GreenTree and Intergroup is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup 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 Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and Intergroup go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Intergroup
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to generate 1.24 times more return on investment than Intergroup. However, GreenTree Hospitality is 1.24 times more volatile than The Intergroup. It trades about 0.04 of its potential returns per unit of risk. The Intergroup is currently generating about -0.12 per unit of risk. If you would invest 258.00 in GreenTree Hospitality Group on August 30, 2024 and sell it today you would earn a total of 14.00 from holding GreenTree Hospitality Group or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
GreenTree Hospitality Group vs. The Intergroup
Performance |
| Timeline |
| GreenTree Hospitality |
| Intergroup |
GreenTree Hospitality and Intergroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTree Hospitality and Intergroup
The main advantage of trading using opposite GreenTree Hospitality and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality position performs unexpectedly, Intergroup 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 Intergroup will offset losses from the drop in Intergroup'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 |
| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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