Correlation Between MOL Hungarian and PPHE Hotel
Can any of the company-specific risk be diversified away by investing in both MOL Hungarian and PPHE Hotel 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 MOL Hungarian and PPHE Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Hungarian Oil and PPHE Hotel Group, you can compare the effects of market volatilities on MOL Hungarian and PPHE Hotel 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 MOL Hungarian with a short position of PPHE Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Hungarian and PPHE Hotel.
Diversification Opportunities for MOL Hungarian and PPHE Hotel
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MOL and PPHE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and PPHE Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE Hotel Group and MOL Hungarian 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 MOL Hungarian Oil are associated (or correlated) with PPHE Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE Hotel Group has no effect on the direction of MOL Hungarian i.e., MOL Hungarian and PPHE Hotel go up and down completely randomly.
Pair Corralation between MOL Hungarian and PPHE Hotel
Assuming the 90 days trading horizon MOL Hungarian is expected to generate 5.79 times less return on investment than PPHE Hotel. But when comparing it to its historical volatility, MOL Hungarian Oil is 1.1 times less risky than PPHE Hotel. It trades about 0.01 of its potential returns per unit of risk. PPHE Hotel Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 100,618 in PPHE Hotel Group on September 12, 2024 and sell it today you would earn a total of 30,382 from holding PPHE Hotel Group or generate 30.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.83% |
| Values | Daily Returns |
MOL Hungarian Oil vs. PPHE Hotel Group
Performance |
| Timeline |
| MOL Hungarian Oil |
| PPHE Hotel Group |
MOL Hungarian and PPHE Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Hungarian and PPHE Hotel
The main advantage of trading using opposite MOL Hungarian and PPHE Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian position performs unexpectedly, PPHE Hotel 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 PPHE Hotel will offset losses from the drop in PPHE Hotel's long position.| MOL Hungarian vs. PPHE Hotel Group | MOL Hungarian vs. Aberdeen Diversified Income | MOL Hungarian vs. Herald Investment Trust | MOL Hungarian vs. The Mercantile Investment |
| PPHE Hotel vs. National Atomic Co | PPHE Hotel vs. OTP Bank Nyrt | PPHE Hotel vs. Samsung Electronics Co | PPHE Hotel vs. Samsung Electronics Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |