Correlation Between ECHO INVESTMENT and MHP Hotel
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By analyzing existing cross correlation between ECHO INVESTMENT ZY and MHP Hotel AG, you can compare the effects of market volatilities on ECHO 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 ECHO INVESTMENT with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECHO INVESTMENT and MHP Hotel.
Diversification Opportunities for ECHO INVESTMENT and MHP Hotel
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ECHO and MHP is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ECHO INVESTMENT ZY 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 ECHO 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 ECHO INVESTMENT ZY 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 ECHO INVESTMENT i.e., ECHO INVESTMENT and MHP Hotel go up and down completely randomly.
Pair Corralation between ECHO INVESTMENT and MHP Hotel
Assuming the 90 days horizon ECHO INVESTMENT is expected to generate 1.71 times less return on investment than MHP Hotel. But when comparing it to its historical volatility, ECHO INVESTMENT ZY is 1.6 times less risky than MHP Hotel. It trades about 0.14 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 109.00 in MHP Hotel AG on September 22, 2024 and sell it today you would earn a total of 11.00 from holding MHP Hotel AG or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECHO INVESTMENT ZY vs. MHP Hotel AG
Performance |
| Timeline |
| ECHO INVESTMENT ZY |
| MHP Hotel AG |
ECHO INVESTMENT and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECHO INVESTMENT and MHP Hotel
The main advantage of trading using opposite ECHO INVESTMENT and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECHO 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.| ECHO INVESTMENT vs. OPEN HOUSE GROUP | ECHO INVESTMENT vs. Superior Plus Corp | ECHO INVESTMENT vs. SIVERS SEMICONDUCTORS AB | ECHO INVESTMENT vs. CHINA HUARONG ENERHD 50 |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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