Correlation Between GreenTree Hospitality and Designer Brands
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality and Designer Brands 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 Designer Brands 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 Designer Brands, you can compare the effects of market volatilities on GreenTree Hospitality and Designer Brands 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 Designer Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Designer Brands.
Diversification Opportunities for GreenTree Hospitality and Designer Brands
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GreenTree and Designer is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and Designer Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Designer Brands 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 Designer Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Designer Brands has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and Designer Brands go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Designer Brands
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to under-perform the Designer Brands. But the stock apears to be less risky and, when comparing its historical volatility, GreenTree Hospitality Group is 3.48 times less risky than Designer Brands. The stock trades about -0.11 of its potential returns per unit of risk. The Designer Brands is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Designer Brands on September 23, 2025 and sell it today you would earn a total of 385.00 from holding Designer Brands or generate 101.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTree Hospitality Group vs. Designer Brands
Performance |
| Timeline |
| GreenTree Hospitality |
| Designer Brands |
GreenTree Hospitality and Designer Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTree Hospitality and Designer Brands
The main advantage of trading using opposite GreenTree Hospitality and Designer Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality position performs unexpectedly, Designer Brands 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 Designer Brands will offset losses from the drop in Designer Brands' long position.| GreenTree Hospitality vs. Viomi Technology ADR | GreenTree Hospitality vs. Rocky Brands | GreenTree Hospitality vs. RCI Hospitality Holdings | GreenTree Hospitality vs. Dennys Corp |
| Designer Brands vs. JJill Inc | Designer Brands vs. Baozun Inc | Designer Brands vs. Childrens Place | Designer Brands vs. Stoneridge |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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