Correlation Between InterContinental and CYIOS
Can any of the company-specific risk be diversified away by investing in both InterContinental and CYIOS 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 InterContinental and CYIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterContinental Hotels Group and CYIOS, you can compare the effects of market volatilities on InterContinental and CYIOS 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 InterContinental with a short position of CYIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and CYIOS.
Diversification Opportunities for InterContinental and CYIOS
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InterContinental and CYIOS is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group and CYIOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CYIOS and InterContinental 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 InterContinental Hotels Group are associated (or correlated) with CYIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CYIOS has no effect on the direction of InterContinental i.e., InterContinental and CYIOS go up and down completely randomly.
Pair Corralation between InterContinental and CYIOS
Considering the 90-day investment horizon InterContinental Hotels Group is expected to generate 0.19 times more return on investment than CYIOS. However, InterContinental Hotels Group is 5.21 times less risky than CYIOS. It trades about 0.39 of its potential returns per unit of risk. CYIOS is currently generating about -0.07 per unit of risk. If you would invest 11,329 in InterContinental Hotels Group on August 30, 2024 and sell it today you would earn a total of 1,272 from holding InterContinental Hotels Group or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. CYIOS
Performance |
| Timeline |
| InterContinental Hotels |
| CYIOS |
InterContinental and CYIOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and CYIOS
The main advantage of trading using opposite InterContinental and CYIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental position performs unexpectedly, CYIOS 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 CYIOS will offset losses from the drop in CYIOS's long position.| InterContinental vs. Hilton Worldwide Holdings | InterContinental vs. Marriott International | InterContinental vs. Choice Hotels International | InterContinental vs. Wyndham Hotels Resorts |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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