Correlation Analysis Between Intercontinental and GreenTree Hospitality

This module allows you to analyze existing cross correlation between Intercontinental Hotels Group and GreenTree Hospitality Group Ltd. You can compare the effects of market volatilities on Intercontinental and GreenTree Hospitality 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 Intercontinental with a short position of GreenTree Hospitality. See also your portfolio center. Please also check ongoing floating volatility patterns of Intercontinental and GreenTree Hospitality.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Intercontinental Hotels  
00

Risk-Adjusted Performance

Over the last 30 days Intercontinental Hotels Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Intercontinental is not utilizing all of its potentials. The prevalent stock price tumult, may contribute to shorter-term losses for the shareholders.
GreenTree Hospitality  
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Risk-Adjusted Performance

Over the last 30 days GreenTree Hospitality Group Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, GreenTree Hospitality is not utilizing all of its potentials. The prevalent stock price tumult, may contribute to shorter-term losses for the shareholders.

Intercontinental and GreenTree Hospitality Volatility Contrast

 Predicted Return Density 
      Returns 

Intercontinental Hotels Group  vs.  GreenTree Hospitality Group Lt

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Intercontinental Hotels Group is expected to under-perform the GreenTree Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, Intercontinental Hotels Group is 2.93 times less risky than GreenTree Hospitality. The stock trades about -0.04 of its potential returns per unit of risk. The GreenTree Hospitality Group Ltd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,178  in GreenTree Hospitality Group Ltd on October 16, 2019 and sell it today you would lose (31.00)  from holding GreenTree Hospitality Group Ltd or give up 2.63% of portfolio value over 30 days.

Pair Corralation between Intercontinental and GreenTree Hospitality

-0.19
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy90.14%
ValuesDaily Returns

Diversification Opportunities for Intercontinental and GreenTree Hospitality

Intercontinental Hotels Group diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Intercontinental Hotels Group and GreenTree Hospitality Group Lt in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on GreenTree Hospitality and Intercontinental 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 Intercontinental Hotels Group are associated (or correlated) with GreenTree Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTree Hospitality has no effect on the direction of Intercontinental i.e. Intercontinental and GreenTree Hospitality go up and down completely randomly.
See also your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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