Correlation Between Xenia Hotels and MTY Food
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and MTY Food 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 Xenia Hotels and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and MTY Food Group, you can compare the effects of market volatilities on Xenia Hotels and MTY Food 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 Xenia Hotels with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and MTY Food.
Diversification Opportunities for Xenia Hotels and MTY Food
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xenia and MTY is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and Xenia 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 Xenia Hotels Resorts are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and MTY Food go up and down completely randomly.
Pair Corralation between Xenia Hotels and MTY Food
Assuming the 90 days trading horizon Xenia Hotels is expected to generate 3.41 times less return on investment than MTY Food. But when comparing it to its historical volatility, Xenia Hotels Resorts is 1.24 times less risky than MTY Food. It trades about 0.05 of its potential returns per unit of risk. MTY Food Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,165 in MTY Food Group on November 5, 2024 and sell it today you would earn a total of 170.00 from holding MTY Food Group or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. MTY Food Group
Performance |
| Timeline |
| Xenia Hotels Resorts |
| MTY Food Group |
Xenia Hotels and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and MTY Food
The main advantage of trading using opposite Xenia Hotels and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Xenia Hotels vs. Gaztransport Technigaz SA | Xenia Hotels vs. SCANSOURCE | Xenia Hotels vs. Alfa Financial Software | Xenia Hotels vs. Casio Computer CoLtd |
| MTY Food vs. CENTURIA OFFICE REIT | MTY Food vs. alstria office REIT AG | MTY Food vs. Corporate Office Properties | MTY Food vs. Lendlease 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |