Correlation Between Wyndham Hotels and Collins Foods
Can any of the company-specific risk be diversified away by investing in both Wyndham Hotels and Collins Foods 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 Wyndham Hotels and Collins Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wyndham Hotels Resorts and Collins Foods Limited, you can compare the effects of market volatilities on Wyndham Hotels and Collins Foods 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 Wyndham Hotels with a short position of Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wyndham Hotels and Collins Foods.
Diversification Opportunities for Wyndham Hotels and Collins Foods
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wyndham and Collins is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Wyndham Hotels Resorts and Collins Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods Limited and Wyndham Hotels 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 Wyndham Hotels Resorts are associated (or correlated) with Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods Limited has no effect on the direction of Wyndham Hotels i.e., Wyndham Hotels and Collins Foods go up and down completely randomly.
Pair Corralation between Wyndham Hotels and Collins Foods
Allowing for the 90-day total investment horizon Wyndham Hotels Resorts is expected to under-perform the Collins Foods. But the stock apears to be less risky and, when comparing its historical volatility, Wyndham Hotels Resorts is 1.28 times less risky than Collins Foods. The stock trades about -0.13 of its potential returns per unit of risk. The Collins Foods Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Collins Foods Limited on August 28, 2025 and sell it today you would earn a total of 130.00 from holding Collins Foods Limited or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wyndham Hotels Resorts vs. Collins Foods Limited
Performance |
| Timeline |
| Wyndham Hotels Resorts |
| Collins Foods Limited |
Wyndham Hotels and Collins Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wyndham Hotels and Collins Foods
The main advantage of trading using opposite Wyndham Hotels and Collins Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wyndham Hotels position performs unexpectedly, Collins Foods 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 Collins Foods will offset losses from the drop in Collins Foods' long position.| Wyndham Hotels vs. Hyatt Hotels | Wyndham Hotels vs. Target Hospitality Corp | Wyndham Hotels vs. Zhang Jia Jie | Wyndham Hotels vs. WE Source Corp |
| Collins Foods vs. McDonalds | Collins Foods vs. Starbucks | Collins Foods vs. Yum Brands | Collins Foods vs. Chipotle Mexican Grill |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |