Correlation Between Atour Lifestyle and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both Atour Lifestyle and Hyatt Hotels 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 Atour Lifestyle and Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atour Lifestyle Holdings and Hyatt Hotels, you can compare the effects of market volatilities on Atour Lifestyle and Hyatt Hotels 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 Atour Lifestyle with a short position of Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atour Lifestyle and Hyatt Hotels.
Diversification Opportunities for Atour Lifestyle and Hyatt Hotels
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atour and Hyatt is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Atour Lifestyle Holdings and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels and Atour Lifestyle 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 Atour Lifestyle Holdings are associated (or correlated) with Hyatt Hotels. 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 has no effect on the direction of Atour Lifestyle i.e., Atour Lifestyle and Hyatt Hotels go up and down completely randomly.
Pair Corralation between Atour Lifestyle and Hyatt Hotels
Given the investment horizon of 90 days Atour Lifestyle Holdings is expected to generate 2.4 times more return on investment than Hyatt Hotels. However, Atour Lifestyle is 2.4 times more volatile than Hyatt Hotels. It trades about 0.05 of its potential returns per unit of risk. Hyatt Hotels is currently generating about 0.07 per unit of risk. If you would invest 1,091 in Atour Lifestyle Holdings on February 4, 2024 and sell it today you would earn a total of 834.00 from holding Atour Lifestyle Holdings or generate 76.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 74.95% |
Values | Daily Returns |
Atour Lifestyle Holdings vs. Hyatt Hotels
Performance |
Timeline |
Atour Lifestyle Holdings |
Hyatt Hotels |
Atour Lifestyle and Hyatt Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atour Lifestyle and Hyatt Hotels
The main advantage of trading using opposite Atour Lifestyle and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atour Lifestyle position performs unexpectedly, Hyatt Hotels 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 Hotels will offset losses from the drop in Hyatt Hotels' long position.Atour Lifestyle vs. InterContinental Hotels Group | Atour Lifestyle vs. GreenTree Hospitality Group | Atour Lifestyle vs. Hyatt Hotels | Atour Lifestyle vs. Choice Hotels International |
Hyatt Hotels vs. Marriott International | Hyatt Hotels vs. InterContinental Hotels Group | Hyatt Hotels vs. Choice Hotels International | Hyatt Hotels vs. Wyndham Hotels Resorts |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
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 | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |