Correlation Between Melia Hotels and Bet At
Can any of the company-specific risk be diversified away by investing in both Melia Hotels and Bet At 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 Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melia Hotels and bet at home AG, you can compare the effects of market volatilities on Melia Hotels and Bet At 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 Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melia Hotels and Bet At.
Diversification Opportunities for Melia Hotels and Bet At
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Melia and Bet is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Melia Hotels and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home 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 Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Melia Hotels i.e., Melia Hotels and Bet At go up and down completely randomly.
Pair Corralation between Melia Hotels and Bet At
Assuming the 90 days trading horizon Melia Hotels is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Melia Hotels is 2.12 times less risky than Bet At. The stock trades about -0.05 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 263.00 in bet at home AG on December 11, 2024 and sell it today you would earn a total of 7.00 from holding bet at home AG or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melia Hotels vs. bet at home AG
Performance |
| Timeline |
| Melia Hotels |
| bet at home |
Melia Hotels and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melia Hotels and Bet At
The main advantage of trading using opposite Melia Hotels and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melia Hotels position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Melia Hotels vs. Molson Coors Beverage | Melia Hotels vs. Cardinal Health | Melia Hotels vs. Cairo Communication SpA | Melia Hotels vs. Check Point Software |
| Bet At vs. EJF Investments | Bet At vs. Edinburgh Investment Trust | Bet At vs. Caledonia Investments | Bet At vs. Mobile Tornado Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |