Correlation Between Melia Hotels and GMP Property
Can any of the company-specific risk be diversified away by investing in both Melia Hotels and GMP Property 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 Melia Hotels and GMP Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melia Hotels and GMP Property SOCIMI, you can compare the effects of market volatilities on Melia Hotels and GMP Property 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 Melia Hotels with a short position of GMP Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melia Hotels and GMP Property.
Diversification Opportunities for Melia Hotels and GMP Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melia and GMP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Melia Hotels and GMP Property SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMP Property SOCIMI and Melia 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 Melia Hotels are associated (or correlated) with GMP Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMP Property SOCIMI has no effect on the direction of Melia Hotels i.e., Melia Hotels and GMP Property go up and down completely randomly.
Pair Corralation between Melia Hotels and GMP Property
If you would invest 6,600 in GMP Property SOCIMI on December 28, 2024 and sell it today you would earn a total of 0.00 from holding GMP Property SOCIMI or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Melia Hotels vs. GMP Property SOCIMI
Performance |
Timeline |
Melia Hotels |
GMP Property SOCIMI |
Melia Hotels and GMP Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Melia Hotels and GMP Property
The main advantage of trading using opposite Melia Hotels and GMP Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melia Hotels position performs unexpectedly, GMP Property 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 GMP Property will offset losses from the drop in GMP Property's long position.Melia Hotels vs. International Consolidated Airlines | Melia Hotels vs. Merlin Properties SOCIMI | Melia Hotels vs. Aena SA | Melia Hotels vs. Acerinox |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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