Correlation Between Mulberry Group and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Mulberry Group and Wyndham Hotels 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 Mulberry Group and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Mulberry Group and Wyndham Hotels 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 Mulberry Group with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and Wyndham Hotels.
Diversification Opportunities for Mulberry Group and Wyndham Hotels
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mulberry and Wyndham is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC and Wyndham Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wyndham Hotels Resorts and Mulberry Group 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 Mulberry Group PLC are associated (or correlated) with Wyndham Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wyndham Hotels Resorts has no effect on the direction of Mulberry Group i.e., Mulberry Group and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Mulberry Group and Wyndham Hotels
Assuming the 90 days trading horizon Mulberry Group PLC is expected to under-perform the Wyndham Hotels. In addition to that, Mulberry Group is 2.95 times more volatile than Wyndham Hotels Resorts. It trades about -0.1 of its total potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.33 per unit of volatility. If you would invest 8,859 in Wyndham Hotels Resorts on September 1, 2024 and sell it today you would earn a total of 927.00 from holding Wyndham Hotels Resorts or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mulberry Group PLC vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Mulberry Group PLC |
| Wyndham Hotels Resorts |
Mulberry Group and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and Wyndham Hotels
The main advantage of trading using opposite Mulberry Group and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group position performs unexpectedly, Wyndham Hotels 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 Wyndham Hotels will offset losses from the drop in Wyndham Hotels' long position.| Mulberry Group vs. Auto Trader Group | Mulberry Group vs. Diversified Energy | Mulberry Group vs. Air Products Chemicals | Mulberry Group vs. Lowland Investment Co |
| Wyndham Hotels vs. Uniper SE | Wyndham Hotels vs. Mulberry Group PLC | Wyndham Hotels vs. London Security Plc | Wyndham Hotels vs. Triad Group PLC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |