Correlation Between Tuniu Corp and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp 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 Tuniu Corp and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Tuniu Corp 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 Tuniu Corp with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Wyndham Hotels.
Diversification Opportunities for Tuniu Corp and Wyndham Hotels
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tuniu and Wyndham is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp 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 Tuniu Corp 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 Tuniu Corp 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 Tuniu Corp i.e., Tuniu Corp and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Tuniu Corp and Wyndham Hotels
Given the investment horizon of 90 days Tuniu Corp is expected to generate 16.04 times less return on investment than Wyndham Hotels. In addition to that, Tuniu Corp is 3.35 times more volatile than Wyndham Hotels Resorts. It trades about 0.01 of its total potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.29 per unit of volatility. If you would invest 9,669 in Wyndham Hotels Resorts on September 15, 2024 and sell it today you would earn a total of 664.00 from holding Wyndham Hotels Resorts or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuniu Corp vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Tuniu Corp |
| Wyndham Hotels Resorts |
Tuniu Corp and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and Wyndham Hotels
The main advantage of trading using opposite Tuniu Corp and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp 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.| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar Corp |
| Wyndham Hotels vs. Yatra Online | Wyndham Hotels vs. Mondee Holdings | Wyndham Hotels vs. MakeMyTrip Limited | Wyndham Hotels vs. Tuniu Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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