Correlation Between Meli Hotels and 8426EPAD0
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By analyzing existing cross correlation between Meli Hotels International and US8426EPAD09, you can compare the effects of market volatilities on Meli Hotels and 8426EPAD0 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 Meli Hotels with a short position of 8426EPAD0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meli Hotels and 8426EPAD0.
Diversification Opportunities for Meli Hotels and 8426EPAD0
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meli and 8426EPAD0 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and US8426EPAD09 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US8426EPAD09 and Meli 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 Meli Hotels International are associated (or correlated) with 8426EPAD0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US8426EPAD09 has no effect on the direction of Meli Hotels i.e., Meli Hotels and 8426EPAD0 go up and down completely randomly.
Pair Corralation between Meli Hotels and 8426EPAD0
Assuming the 90 days horizon Meli Hotels International is expected to generate 2.1 times more return on investment than 8426EPAD0. However, Meli Hotels is 2.1 times more volatile than US8426EPAD09. It trades about 0.22 of its potential returns per unit of risk. US8426EPAD09 is currently generating about -0.25 per unit of risk. If you would invest 711.00 in Meli Hotels International on September 24, 2024 and sell it today you would earn a total of 68.00 from holding Meli Hotels International or generate 9.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.0% |
Values | Daily Returns |
Meli Hotels International vs. US8426EPAD09
Performance |
Timeline |
Meli Hotels International |
US8426EPAD09 |
Meli Hotels and 8426EPAD0 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Meli Hotels and 8426EPAD0
The main advantage of trading using opposite Meli Hotels and 8426EPAD0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meli Hotels position performs unexpectedly, 8426EPAD0 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 8426EPAD0 will offset losses from the drop in 8426EPAD0's long position.Meli Hotels vs. Tianjin Capital Environmental | Meli Hotels vs. Avis Budget Group | Meli Hotels vs. First Ship Lease | Meli Hotels vs. Triton International Limited |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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