Correlation Between Xenia Hotels and MHP Hotel
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By analyzing existing cross correlation between Xenia Hotels Resorts and MHP Hotel AG, you can compare the effects of market volatilities on Xenia Hotels 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 Xenia Hotels with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and MHP Hotel.
Diversification Opportunities for Xenia Hotels and MHP Hotel
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xenia and MHP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts 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 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 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 Xenia Hotels i.e., Xenia Hotels and MHP Hotel go up and down completely randomly.
Pair Corralation between Xenia Hotels and MHP Hotel
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.88 times more return on investment than MHP Hotel. However, Xenia Hotels Resorts is 1.14 times less risky than MHP Hotel. It trades about -0.26 of its potential returns per unit of risk. MHP Hotel AG is currently generating about -0.33 per unit of risk. If you would invest 1,320 in Xenia Hotels Resorts on December 25, 2024 and sell it today you would lose (170.00) from holding Xenia Hotels Resorts or give up 12.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. MHP Hotel AG
Performance |
| Timeline |
| Xenia Hotels Resorts |
| MHP Hotel AG |
Xenia Hotels and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and MHP Hotel
The main advantage of trading using opposite Xenia Hotels and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels 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.| Xenia Hotels vs. AEON METALS LTD | Xenia Hotels vs. Jacquet Metal Service | Xenia Hotels vs. Chesapeake Utilities | Xenia Hotels vs. Osisko Metals |
| MHP Hotel vs. PANIN INSURANCE | MHP Hotel vs. AEON STORES | MHP Hotel vs. QBE Insurance Group | MHP Hotel vs. ZURICH INSURANCE 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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