Correlation Between Atour Lifestyle and Wyndham Hotels

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Can any of the company-specific risk be diversified away by investing in both Atour Lifestyle and Wyndham 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 Wyndham 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 Wyndham Hotels Resorts, you can compare the effects of market volatilities on Atour Lifestyle and Wyndham 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 Wyndham Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atour Lifestyle and Wyndham Hotels.

Diversification Opportunities for Atour Lifestyle and Wyndham Hotels

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Atour and Wyndham is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Atour Lifestyle Holdings and Wyndham Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wyndham Hotels Resorts 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 Wyndham Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wyndham Hotels Resorts has no effect on the direction of Atour Lifestyle i.e., Atour Lifestyle and Wyndham Hotels go up and down completely randomly.

Pair Corralation between Atour Lifestyle and Wyndham Hotels

Given the investment horizon of 90 days Atour Lifestyle Holdings is expected to generate 1.37 times more return on investment than Wyndham Hotels. However, Atour Lifestyle is 1.37 times more volatile than Wyndham Hotels Resorts. It trades about 0.11 of its potential returns per unit of risk. Wyndham Hotels Resorts is currently generating about -0.18 per unit of risk. If you would invest  3,488  in Atour Lifestyle Holdings on August 15, 2025 and sell it today you would earn a total of  543.00  from holding Atour Lifestyle Holdings or generate 15.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Atour Lifestyle Holdings  vs.  Wyndham Hotels Resorts

 Performance 
       Timeline  
Atour Lifestyle Holdings 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Atour Lifestyle Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Atour Lifestyle unveiled solid returns over the last few months and may actually be approaching a breakup point.
Wyndham Hotels Resorts 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Wyndham Hotels Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Atour Lifestyle and Wyndham Hotels Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atour Lifestyle and Wyndham Hotels

The main advantage of trading using opposite Atour Lifestyle and Wyndham Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atour Lifestyle position performs unexpectedly, Wyndham 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 Wyndham Hotels will offset losses from the drop in Wyndham Hotels' long position.
The idea behind Atour Lifestyle Holdings and Wyndham Hotels Resorts 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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