Correlation Between LuxUrban Hotels and InterContinental

Can any of the company-specific risk be diversified away by investing in both LuxUrban Hotels and InterContinental 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 LuxUrban Hotels and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LuxUrban Hotels and InterContinental Hotels Group, you can compare the effects of market volatilities on LuxUrban Hotels and InterContinental 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 LuxUrban Hotels with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of LuxUrban Hotels and InterContinental.

Diversification Opportunities for LuxUrban Hotels and InterContinental

0.0

Correlation Coefficient

LuxUrban Hotels  InterContinental

Pay attention - limited upside

The 3 months correlation between LuxUrban and InterContinental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LuxUrban Hotels and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and LuxUrban 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 LuxUrban Hotels are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of LuxUrban Hotels i.e., LuxUrban Hotels and InterContinental go up and down completely randomly.

Pair Corralation between LuxUrban Hotels and InterContinental

If you would invest  11,534  in InterContinental Hotels Group on May 7, 2025 and sell it today you would earn a total of  1.00  from holding InterContinental Hotels Group or generate 0.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LuxUrban Hotels  vs.  InterContinental Hotels Group

LuxUrban Hotels

Risk-Adjusted Performance

Weakest

Over the last 90 days LuxUrban Hotels has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, LuxUrban Hotels is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

InterContinental Hotels

Risk-Adjusted Performance

Weakest

Over the last 90 days InterContinental Hotels Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, InterContinental is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with LuxUrban Hotels and InterContinental

The main advantage of trading using opposite LuxUrban Hotels and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LuxUrban Hotels position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.

The idea behind LuxUrban Hotels and InterContinental Hotels Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..