Correlation Between Vastned Retail and Wyndham Hotels
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and Wyndham Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and Wyndham Hotels Resorts, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Wyndham Hotels.
Diversification Opportunities for Vastned Retail and Wyndham Hotels
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vastned and Wyndham is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV 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 Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and Wyndham Hotels go up and down completely randomly.
Pair Corralation between Vastned Retail and Wyndham Hotels
Assuming the 90 days horizon Vastned Retail is expected to generate 116.85 times less return on investment than Wyndham Hotels. But when comparing it to its historical volatility, Vastned Retail NV is 2.05 times less risky than Wyndham Hotels. It trades about 0.0 of its potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,638 in Wyndham Hotels Resorts on September 15, 2024 and sell it today you would earn a total of 3,124 from holding Wyndham Hotels Resorts or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Wyndham Hotels Resorts
Performance |
| Timeline |
| Vastned Retail NV |
| Wyndham Hotels Resorts |
Vastned Retail and Wyndham Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Wyndham Hotels
The main advantage of trading using opposite Vastned Retail and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. SIVERS SEMICONDUCTORS AB |
| Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. InterContinental Hotels Group | Wyndham Hotels vs. INTERCONT HOTELS | Wyndham Hotels 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |