InterContinental Correlations

IHG Stock

USD 111.91 0.73 0.66%

The current 90-days correlation between InterContinental Hotels and Hilton Worldwide Holdings is 0.72 (i.e., Poor diversification). The correlation of InterContinental is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

InterContinental Correlation With Market

Very weak diversification

The correlation between InterContinental Hotels Group and DJI is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in InterContinental Hotels Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.

Moving together with InterContinental Stock

0.83	H	Hyatt Hotels	Pair Corr
0.88	WH	Wyndham Hotels Resorts	Pair Corr
0.66	DNUT	Krispy Kreme	Pair Corr
0.81	WING	Wingstop	Pair Corr
0.8	FLUT	Flutter Entertainment plc	Pair Corr
0.88	BYD	Boyd Gaming	Pair Corr
0.89	CCL	Carnival	Pair Corr
0.89	CHH	Choice Hotels Intern	Pair Corr
0.68	CMG	Chipotle Mexican Grill Aggressive Push	Pair Corr
0.83	CSV	Carriage Services	Pair Corr
0.9	CUK	Carnival Plc ADS	Pair Corr
0.88	CZR	Caesars Entertainment	Pair Corr
0.83	FWRG	First Watch Restaurant	Pair Corr
0.89	XPOF	Xponential Fitness Buyout Trend	Pair Corr
0.88	RCL	Royal Caribbean Cruises	Pair Corr
0.79	RGS	Regis Common	Pair Corr

Moving against InterContinental Stock

0.57	EJH	E Home Household	Pair Corr
0.54	QSR	Restaurant Brands	Pair Corr
0.46	LNW	Light Wonder Downward Rally	Pair Corr
0.35	MCD	McDonalds	Pair Corr

Related Correlations Analysis

	HLT	MAR	CHH	WH	H	ATAT	GHG
HLT		0.85	0.89	0.94	0.57	0.09	0.58	HLT
MAR	0.85		0.89	0.89	0.89	-0.35	0.26	MAR
CHH	0.89	0.89		0.91	0.7	-0.18	0.47	CHH
WH	0.94	0.89	0.91		0.66	-0.08	0.5	WH
H	0.57	0.89	0.7	0.66		-0.66	-0.13	H
ATAT	0.09	-0.35	-0.18	-0.08	-0.66		0.62	ATAT
GHG	0.58	0.26	0.47	0.5	-0.13	0.62		GHG
	HLT	MAR	CHH	WH	H	ATAT	GHG

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WH	+ 0.94	HLT
WH	+ 0.91	CHH
CHH	+ 0.89	HLT
CHH	+ 0.89	MAR
WH	+ 0.89	MAR
H	+ 0.89	MAR

High negative correlations

ATAT	- 0.66	H
ATAT	- 0.35	MAR
ATAT	- 0.18	CHH
GHG	- 0.13	H
ATAT	- 0.08	WH

Risk-Adjusted Indicators

There is a big difference between InterContinental Stock performing well and InterContinental Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze InterContinental's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
HLT	1.15	(0.04)	0.00	(0.04)	0.00	0.00	2.30	(3.05)	8.20
MAR	1.25	(0.17)	0.00	(0.16)	0.00	0.00	2.29	(3.12)	9.01
CHH	1.10	(0.07)	0.00	(0.14)	0.00	0.00	2.03	(2.16)	11.03
WH	1.13	(0.09)	0.00	(0.09)	0.00	0.00	2.20	(2.78)	7.32
H	1.47	(0.27)	0.00	(0.26)	0.00	0.00	2.86	(3.38)	14.00
ATAT	2.12	0.10	0.04	0.09	2.54	(2.29)	4.44	(4.83)	9.79
GHG	2.00	0.00	0.00	0.02	2.05	(2.56)	4.96	(3.40)	10.29

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