Correlation Between Wendys and HYATT
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By analyzing existing cross correlation between The Wendys Co and HYATT HOTELS P, you can compare the effects of market volatilities on Wendys and HYATT 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 Wendys with a short position of HYATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and HYATT.
Diversification Opportunities for Wendys and HYATT
Very good diversification
The 3 months correlation between Wendys and HYATT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and HYATT HOTELS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS P and Wendys 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 The Wendys Co are associated (or correlated) with HYATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS P has no effect on the direction of Wendys i.e., Wendys and HYATT go up and down completely randomly.
Pair Corralation between Wendys and HYATT
If you would invest 10,019 in HYATT HOTELS P on September 2, 2024 and sell it today you would lose (1.00) from holding HYATT HOTELS P or give up 0.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
The Wendys Co vs. HYATT HOTELS P
Performance |
| Timeline |
| The Wendys |
| HYATT HOTELS P |
Wendys and HYATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and HYATT
The main advantage of trading using opposite Wendys and HYATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, HYATT 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 HYATT will offset losses from the drop in HYATT's long position.| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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