Correlation Between UNIVERSAL MUSIC and MHP Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNIVERSAL MUSIC GROUP and MHP Hotel AG, you can compare the effects of market volatilities on UNIVERSAL MUSIC and MHP 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 UNIVERSAL MUSIC with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIVERSAL MUSIC and MHP Hotel.
Diversification Opportunities for UNIVERSAL MUSIC and MHP Hotel
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNIVERSAL and MHP is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding UNIVERSAL MUSIC GROUP and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel AG and UNIVERSAL MUSIC 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 UNIVERSAL MUSIC GROUP are associated (or correlated) with MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of UNIVERSAL MUSIC i.e., UNIVERSAL MUSIC and MHP Hotel go up and down completely randomly.
Pair Corralation between UNIVERSAL MUSIC and MHP Hotel
Assuming the 90 days horizon UNIVERSAL MUSIC is expected to generate 1.49 times less return on investment than MHP Hotel. But when comparing it to its historical volatility, UNIVERSAL MUSIC GROUP is 1.48 times less risky than MHP Hotel. It trades about 0.01 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 121.00 in MHP Hotel AG on September 2, 2024 and sell it today you would lose (2.00) from holding MHP Hotel AG or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIVERSAL MUSIC GROUP vs. MHP Hotel AG
Performance |
| Timeline |
| UNIVERSAL MUSIC GROUP |
| MHP Hotel AG |
UNIVERSAL MUSIC and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIVERSAL MUSIC and MHP Hotel
The main advantage of trading using opposite UNIVERSAL MUSIC and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIVERSAL MUSIC position performs unexpectedly, MHP 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| UNIVERSAL MUSIC vs. Apple Inc | UNIVERSAL MUSIC vs. Apple Inc | UNIVERSAL MUSIC vs. Apple Inc | UNIVERSAL MUSIC vs. Apple Inc |
| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |