Correlation Between BRAEMAR HOTELS and MHP Hotel
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By analyzing existing cross correlation between BRAEMAR HOTELS RES and MHP Hotel AG, you can compare the effects of market volatilities on BRAEMAR 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 BRAEMAR HOTELS with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAEMAR HOTELS and MHP Hotel.
Diversification Opportunities for BRAEMAR HOTELS and MHP Hotel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BRAEMAR and MHP is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BRAEMAR HOTELS RES 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 BRAEMAR 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 BRAEMAR HOTELS RES 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 BRAEMAR HOTELS i.e., BRAEMAR HOTELS and MHP Hotel go up and down completely randomly.
Pair Corralation between BRAEMAR HOTELS and MHP Hotel
Assuming the 90 days horizon BRAEMAR HOTELS RES is expected to generate 2.46 times more return on investment than MHP Hotel. However, BRAEMAR HOTELS is 2.46 times more volatile than MHP Hotel AG. It trades about 0.05 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 214.00 in BRAEMAR HOTELS RES on October 12, 2024 and sell it today you would earn a total of 66.00 from holding BRAEMAR HOTELS RES or generate 30.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAEMAR HOTELS RES vs. MHP Hotel AG
Performance |
| Timeline |
| BRAEMAR HOTELS RES |
| MHP Hotel AG |
BRAEMAR HOTELS and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAEMAR HOTELS and MHP Hotel
The main advantage of trading using opposite BRAEMAR HOTELS and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAEMAR 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.| BRAEMAR HOTELS vs. Hua Hong Semiconductor | BRAEMAR HOTELS vs. DEVRY EDUCATION GRP | BRAEMAR HOTELS vs. TAL Education Group | BRAEMAR HOTELS vs. TOREX SEMICONDUCTOR LTD |
| MHP Hotel vs. United Utilities Group | MHP Hotel vs. Algonquin Power Utilities | MHP Hotel vs. Tencent Music Entertainment | MHP Hotel vs. Wizz Air Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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