Correlation Between Wyndham Hotels and Regis Common
Can any of the company-specific risk be diversified away by investing in both Wyndham Hotels and Regis Common 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 Wyndham Hotels and Regis Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wyndham Hotels Resorts and Regis Common, you can compare the effects of market volatilities on Wyndham Hotels and Regis Common 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 Wyndham Hotels with a short position of Regis Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wyndham Hotels and Regis Common.
Diversification Opportunities for Wyndham Hotels and Regis Common
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wyndham and Regis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Wyndham Hotels Resorts and Regis Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Common and Wyndham 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 Wyndham Hotels Resorts are associated (or correlated) with Regis Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Common has no effect on the direction of Wyndham Hotels i.e., Wyndham Hotels and Regis Common go up and down completely randomly.
Pair Corralation between Wyndham Hotels and Regis Common
Allowing for the 90-day total investment horizon Wyndham Hotels Resorts is expected to generate 0.44 times more return on investment than Regis Common. However, Wyndham Hotels Resorts is 2.29 times less risky than Regis Common. It trades about 0.25 of its potential returns per unit of risk. Regis Common is currently generating about -0.03 per unit of risk. If you would invest 7,814 in Wyndham Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 1,947 from holding Wyndham Hotels Resorts or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wyndham Hotels Resorts vs. Regis Common
Performance |
| Timeline |
| Wyndham Hotels Resorts |
| Regis Common |
Wyndham Hotels and Regis Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wyndham Hotels and Regis Common
The main advantage of trading using opposite Wyndham Hotels and Regis Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wyndham Hotels position performs unexpectedly, Regis Common 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 Regis Common will offset losses from the drop in Regis Common's long position.| Wyndham Hotels vs. InterContinental Hotels Group | Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. Hilton Worldwide Holdings | Wyndham Hotels vs. Marriott International |
| Regis Common vs. Goodfood Market Corp | Regis Common vs. Frontdoor | Regis Common vs. XWELL Inc | Regis Common vs. Interactive Strength Common |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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