Correlation Between Wyndham Hotels and Backstageplay
Can any of the company-specific risk be diversified away by investing in both Wyndham Hotels and Backstageplay 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 Backstageplay 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 Backstageplay, you can compare the effects of market volatilities on Wyndham Hotels and Backstageplay 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 Backstageplay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wyndham Hotels and Backstageplay.
Diversification Opportunities for Wyndham Hotels and Backstageplay
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wyndham and Backstageplay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wyndham Hotels Resorts and Backstageplay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Backstageplay 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 Backstageplay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Backstageplay has no effect on the direction of Wyndham Hotels i.e., Wyndham Hotels and Backstageplay go up and down completely randomly.
Pair Corralation between Wyndham Hotels and Backstageplay
If you would invest 4.90 in Backstageplay on September 8, 2025 and sell it today you would earn a total of 0.00 from holding Backstageplay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Wyndham Hotels Resorts vs. Backstageplay
Performance |
| Timeline |
| Wyndham Hotels Resorts |
| Backstageplay |
Wyndham Hotels and Backstageplay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wyndham Hotels and Backstageplay
The main advantage of trading using opposite Wyndham Hotels and Backstageplay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wyndham Hotels position performs unexpectedly, Backstageplay 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 Backstageplay will offset losses from the drop in Backstageplay's long position.| Wyndham Hotels vs. Arrow Electronics | Wyndham Hotels vs. Environmental Packaging Technologies | Wyndham Hotels vs. TCL Electronics Holdings | Wyndham Hotels vs. Benchmark Electronics |
| Backstageplay vs. Telkom Indonesia Tbk | Backstageplay vs. PT Bank Rakyat | Backstageplay vs. Bank Rakyat | Backstageplay vs. Astra International Tbk |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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