Correlation Between LuxUrban Hotels and Atour Lifestyle
Can any of the company-specific risk be diversified away by investing in both LuxUrban Hotels 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 LuxUrban Hotels and Atour Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LuxUrban Hotels and Atour Lifestyle Holdings, you can compare the effects of market volatilities on LuxUrban Hotels 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 LuxUrban Hotels with a short position of Atour Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of LuxUrban Hotels and Atour Lifestyle.
Diversification Opportunities for LuxUrban Hotels and Atour Lifestyle
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LuxUrban and Atour is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding LuxUrban Hotels 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 LuxUrban Hotels 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 LuxUrban Hotels 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 LuxUrban Hotels i.e., LuxUrban Hotels and Atour Lifestyle go up and down completely randomly.
Pair Corralation between LuxUrban Hotels and Atour Lifestyle
Given the investment horizon of 90 days LuxUrban Hotels is expected to under-perform the Atour Lifestyle. In addition to that, LuxUrban Hotels is 6.06 times more volatile than Atour Lifestyle Holdings. It trades about -0.26 of its total potential returns per unit of risk. Atour Lifestyle Holdings is currently generating about -0.11 per unit of volatility. If you would invest 2,736 in Atour Lifestyle Holdings on August 28, 2024 and sell it today you would lose (144.00) from holding Atour Lifestyle Holdings or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
LuxUrban Hotels vs. Atour Lifestyle Holdings
Performance |
| Timeline |
| LuxUrban Hotels |
| Atour Lifestyle Holdings |
LuxUrban Hotels and Atour Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LuxUrban Hotels and Atour Lifestyle
The main advantage of trading using opposite LuxUrban Hotels and Atour Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LuxUrban Hotels 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.| LuxUrban Hotels vs. GreenTree Hospitality Group | LuxUrban Hotels vs. InterContinental Hotels Group | LuxUrban Hotels vs. Atour Lifestyle Holdings | LuxUrban Hotels 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |