Correlation Between KIMBALL ELECTRONICS and MHP Hotel
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By analyzing existing cross correlation between KIMBALL ELECTRONICS and MHP Hotel AG, you can compare the effects of market volatilities on KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and MHP Hotel.
Diversification Opportunities for KIMBALL ELECTRONICS and MHP Hotel
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KIMBALL and MHP is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and MHP Hotel go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and MHP Hotel
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, KIMBALL ELECTRONICS is 1.46 times less risky than MHP Hotel. The stock trades about -0.01 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 117.00 in MHP Hotel AG on October 16, 2024 and sell it today you would earn a total of 11.00 from holding MHP Hotel AG or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. MHP Hotel AG
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| MHP Hotel AG |
KIMBALL ELECTRONICS and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and MHP Hotel
The main advantage of trading using opposite KIMBALL ELECTRONICS and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS 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.| KIMBALL ELECTRONICS vs. Scottish Mortgage Investment | KIMBALL ELECTRONICS vs. SLR Investment Corp | KIMBALL ELECTRONICS vs. FIRST SAVINGS FINL | KIMBALL ELECTRONICS vs. New Residential Investment |
| MHP Hotel vs. Yuexiu Transport Infrastructure | MHP Hotel vs. Perseus Mining Limited | MHP Hotel vs. Gold Road Resources | MHP Hotel vs. Harmony Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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