Correlation Between GreenTree Hospitality and Travel Leisure
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality and Travel Leisure 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 GreenTree Hospitality and Travel Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenTree Hospitality Group and Travel Leisure Co, you can compare the effects of market volatilities on GreenTree Hospitality and Travel Leisure 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 GreenTree Hospitality with a short position of Travel Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Travel Leisure.
Diversification Opportunities for GreenTree Hospitality and Travel Leisure
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GreenTree and Travel is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and Travel Leisure Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Travel Leisure and GreenTree 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 GreenTree Hospitality Group are associated (or correlated) with Travel Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Travel Leisure has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and Travel Leisure go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Travel Leisure
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to under-perform the Travel Leisure. In addition to that, GreenTree Hospitality is 1.56 times more volatile than Travel Leisure Co. It trades about -0.01 of its total potential returns per unit of risk. Travel Leisure Co is currently generating about 0.06 per unit of volatility. If you would invest 3,407 in Travel Leisure Co on December 4, 2024 and sell it today you would earn a total of 1,976 from holding Travel Leisure Co or generate 58.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GreenTree Hospitality Group vs. Travel Leisure Co
Performance |
Timeline |
GreenTree Hospitality |
Travel Leisure |
GreenTree Hospitality and Travel Leisure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GreenTree Hospitality and Travel Leisure
The main advantage of trading using opposite GreenTree Hospitality and Travel Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality position performs unexpectedly, Travel Leisure 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 Travel Leisure will offset losses from the drop in Travel Leisure's long position.GreenTree Hospitality vs. InterContinental Hotels Group | GreenTree Hospitality vs. Atour Lifestyle Holdings | GreenTree Hospitality vs. Huazhu Group | GreenTree Hospitality vs. Hyatt Hotels |
Travel Leisure vs. Yatra Online | Travel Leisure vs. Despegar Corp | Travel Leisure vs. Lindblad Expeditions Holdings | Travel Leisure vs. Expedia Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stocks Directory Find actively traded stocks across global markets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |