Correlation Between MHP Hotel and COVIVIO HOTELS
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By analyzing existing cross correlation between MHP Hotel AG and COVIVIO HOTELS INH, you can compare the effects of market volatilities on MHP Hotel and COVIVIO HOTELS 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 MHP Hotel with a short position of COVIVIO HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and COVIVIO HOTELS.
Diversification Opportunities for MHP Hotel and COVIVIO HOTELS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and COVIVIO is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and COVIVIO HOTELS INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COVIVIO HOTELS INH and MHP Hotel 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 MHP Hotel AG are associated (or correlated) with COVIVIO HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COVIVIO HOTELS INH has no effect on the direction of MHP Hotel i.e., MHP Hotel and COVIVIO HOTELS go up and down completely randomly.
Pair Corralation between MHP Hotel and COVIVIO HOTELS
Assuming the 90 days trading horizon MHP Hotel is expected to generate 3.88 times less return on investment than COVIVIO HOTELS. In addition to that, MHP Hotel is 1.46 times more volatile than COVIVIO HOTELS INH. It trades about 0.04 of its total potential returns per unit of risk. COVIVIO HOTELS INH is currently generating about 0.25 per unit of volatility. If you would invest 1,820 in COVIVIO HOTELS INH on September 26, 2024 and sell it today you would earn a total of 165.00 from holding COVIVIO HOTELS INH or generate 9.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MHP Hotel AG vs. COVIVIO HOTELS INH
Performance |
Timeline |
MHP Hotel AG |
COVIVIO HOTELS INH |
MHP Hotel and COVIVIO HOTELS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MHP Hotel and COVIVIO HOTELS
The main advantage of trading using opposite MHP Hotel and COVIVIO HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, COVIVIO HOTELS 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 COVIVIO HOTELS will offset losses from the drop in COVIVIO HOTELS's long position.MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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