Correlation Between Studio City and GreenTree Hospitality
Can any of the company-specific risk be diversified away by investing in both Studio City and GreenTree Hospitality 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 Studio City and GreenTree Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Studio City International and GreenTree Hospitality Group, you can compare the effects of market volatilities on Studio City 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 Studio City with a short position of GreenTree Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Studio City and GreenTree Hospitality.
Diversification Opportunities for Studio City and GreenTree Hospitality
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Studio and GreenTree is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Studio City International and GreenTree Hospitality Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTree Hospitality and Studio City 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 Studio City International 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 Studio City i.e., Studio City and GreenTree Hospitality go up and down completely randomly.
Pair Corralation between Studio City and GreenTree Hospitality
Considering the 90-day investment horizon Studio City International is expected to under-perform the GreenTree Hospitality. In addition to that, Studio City is 2.38 times more volatile than GreenTree Hospitality Group. It trades about -0.07 of its total potential returns per unit of risk. GreenTree Hospitality Group is currently generating about -0.1 per unit of volatility. If you would invest 212.00 in GreenTree Hospitality Group on September 26, 2025 and sell it today you would lose (30.00) from holding GreenTree Hospitality Group or give up 14.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Studio City International vs. GreenTree Hospitality Group
Performance |
| Timeline |
| Studio City International |
| GreenTree Hospitality |
Studio City and GreenTree Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Studio City and GreenTree Hospitality
The main advantage of trading using opposite Studio City and GreenTree Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Studio City position performs unexpectedly, GreenTree Hospitality 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 GreenTree Hospitality will offset losses from the drop in GreenTree Hospitality's long position.| Studio City vs. Inspired Entertainment | Studio City vs. Designer Brands | Studio City vs. Baozun Inc | Studio City vs. Flexsteel Industries |
| GreenTree Hospitality vs. Viomi Technology ADR | GreenTree Hospitality vs. Rocky Brands | GreenTree Hospitality vs. RCI Hospitality Holdings | GreenTree Hospitality vs. Dennys Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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