Correlation Between CHRYSALIS INVESTMENTS and MHP Hotel
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By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and MHP Hotel AG, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and MHP Hotel.
Diversification Opportunities for CHRYSALIS INVESTMENTS and MHP Hotel
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHRYSALIS and MHP is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD 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 CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD 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 CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and MHP Hotel go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and MHP Hotel
Assuming the 90 days horizon CHRYSALIS INVESTMENTS is expected to generate 7.72 times less return on investment than MHP Hotel. But when comparing it to its historical volatility, CHRYSALIS INVESTMENTS LTD is 1.81 times less risky than MHP Hotel. It trades about 0.02 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 114.00 in MHP Hotel AG on October 19, 2024 and sell it today you would earn a total of 11.00 from holding MHP Hotel AG or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. MHP Hotel AG
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| MHP Hotel AG |
CHRYSALIS INVESTMENTS and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and MHP Hotel
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS 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.| CHRYSALIS INVESTMENTS vs. Carnegie Clean Energy | CHRYSALIS INVESTMENTS vs. KINGBOARD CHEMICAL | CHRYSALIS INVESTMENTS vs. PLANT VEDA FOODS | CHRYSALIS INVESTMENTS vs. Soken Chemical Engineering |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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