Correlation Between Hyatt Hotels and MHP Hotel
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By analyzing existing cross correlation between Hyatt Hotels and MHP Hotel AG, you can compare the effects of market volatilities on Hyatt 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 Hyatt Hotels with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and MHP Hotel.
Diversification Opportunities for Hyatt Hotels and MHP Hotel
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyatt and MHP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels 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 Hyatt 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 Hyatt Hotels 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 Hyatt Hotels i.e., Hyatt Hotels and MHP Hotel go up and down completely randomly.
Pair Corralation between Hyatt Hotels and MHP Hotel
Assuming the 90 days trading horizon Hyatt Hotels is expected to generate 0.68 times more return on investment than MHP Hotel. However, Hyatt Hotels is 1.48 times less risky than MHP Hotel. It trades about 0.06 of its potential returns per unit of risk. MHP Hotel AG is currently generating about -0.01 per unit of risk. If you would invest 13,281 in Hyatt Hotels on August 28, 2024 and sell it today you would earn a total of 1,544 from holding Hyatt Hotels or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Hyatt Hotels vs. MHP Hotel AG
Performance |
| Timeline |
| Hyatt Hotels |
| MHP Hotel AG |
Hyatt Hotels and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and MHP Hotel
The main advantage of trading using opposite Hyatt Hotels and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt 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.| Hyatt Hotels vs. Chesapeake Utilities | Hyatt Hotels vs. MOLSON RS BEVERAGE | Hyatt Hotels vs. BJs Restaurants | Hyatt Hotels vs. Motorcar Parts of |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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