Correlation Between Gladstone Investment and MHP Hotel
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By analyzing existing cross correlation between Gladstone Investment and MHP Hotel AG, you can compare the effects of market volatilities on Gladstone Investment 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 Gladstone Investment with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and MHP Hotel.
Diversification Opportunities for Gladstone Investment and MHP Hotel
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gladstone and MHP is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and MHP Hotel go up and down completely randomly.
Pair Corralation between Gladstone Investment and MHP Hotel
Assuming the 90 days horizon Gladstone Investment is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Gladstone Investment is 1.77 times less risky than MHP Hotel. The stock trades about -0.05 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 115.00 in MHP Hotel AG on September 22, 2024 and sell it today you would earn a total of 5.00 from holding MHP Hotel AG or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. MHP Hotel AG
Performance |
| Timeline |
| Gladstone Investment |
| MHP Hotel AG |
Gladstone Investment and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and MHP Hotel
The main advantage of trading using opposite Gladstone Investment and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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.| Gladstone Investment vs. ADRIATIC METALS LS 013355 | Gladstone Investment vs. AEGEAN AIRLINES | Gladstone Investment vs. International Consolidated Airlines | Gladstone Investment vs. Harmony Gold Mining |
| MHP Hotel vs. China Communications Services | MHP Hotel vs. ECHO INVESTMENT ZY | MHP Hotel vs. Chunghwa Telecom Co | MHP Hotel vs. Gladstone Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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