Correlation Between InterContinental and Sonder Holdings
Can any of the company-specific risk be diversified away by investing in both InterContinental and Sonder Holdings 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 Sonder Holdings 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 Sonder Holdings, you can compare the effects of market volatilities on InterContinental and Sonder Holdings 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 Sonder Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and Sonder Holdings.
Diversification Opportunities for InterContinental and Sonder Holdings
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InterContinental and Sonder is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder Holdings 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 Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of InterContinental i.e., InterContinental and Sonder Holdings go up and down completely randomly.
Pair Corralation between InterContinental and Sonder Holdings
Considering the 90-day investment horizon InterContinental is expected to generate 5.06 times less return on investment than Sonder Holdings. But when comparing it to its historical volatility, InterContinental Hotels Group is 11.86 times less risky than Sonder Holdings. It trades about 0.14 of its potential returns per unit of risk. Sonder Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Sonder Holdings on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Sonder Holdings or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. Sonder Holdings
Performance |
| Timeline |
| InterContinental Hotels |
| Sonder Holdings |
InterContinental and Sonder Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and Sonder Holdings
The main advantage of trading using opposite InterContinental and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental position performs unexpectedly, Sonder Holdings 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.| InterContinental vs. Yatra Online | InterContinental vs. Mondee Holdings | InterContinental vs. MakeMyTrip Limited | InterContinental vs. Tuniu Corp |
| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |