Correlation Between Ryman Hospitality and INTER CARS

Can any of the company-specific risk be diversified away by investing in both Ryman Hospitality and INTER CARS 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 Ryman Hospitality and INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ryman Hospitality Properties and INTER CARS SA, you can compare the effects of market volatilities on Ryman Hospitality and INTER CARS 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 Ryman Hospitality with a short position of INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryman Hospitality and INTER CARS.

Diversification Opportunities for Ryman Hospitality and INTER CARS

-0.1

Correlation Coefficient

Ryman Hospitality  INTER CARS

Good diversification

The 3 months correlation between Ryman and INTER is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ryman Hospitality Properties and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA and Ryman Hospitality 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 Ryman Hospitality Properties are associated (or correlated) with INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Ryman Hospitality i.e., Ryman Hospitality and INTER CARS go up and down completely randomly.

Pair Corralation between Ryman Hospitality and INTER CARS

Assuming the 90 days horizon Ryman Hospitality Properties is expected to under-perform the INTER CARS. In addition to that, Ryman Hospitality is 1.08 times more volatile than INTER CARS SA. It trades about -0.09 of its total potential returns per unit of risk. INTER CARS SA is currently generating about 0.05 per unit of volatility. If you would invest  11,980  in INTER CARS SA on December 28, 2024 and sell it today you would earn a total of  620.00  from holding INTER CARS SA or generate 5.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ryman Hospitality Properties  vs.  INTER CARS SA

Ryman Hospitality

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ryman Hospitality Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INTER CARS SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INTER CARS SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, INTER CARS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ryman Hospitality and INTER CARS

The main advantage of trading using opposite Ryman Hospitality and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryman Hospitality position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.

The idea behind Ryman Hospitality Properties and INTER CARS SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.