Correlation Between Superior Plus and MHP Hotel
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By analyzing existing cross correlation between Superior Plus Corp and MHP Hotel AG, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and MHP Hotel.
Diversification Opportunities for Superior Plus and MHP Hotel
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and MHP is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and MHP Hotel go up and down completely randomly.
Pair Corralation between Superior Plus and MHP Hotel
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the MHP Hotel. In addition to that, Superior Plus is 1.01 times more volatile than MHP Hotel AG. It trades about -0.07 of its total potential returns per unit of risk. MHP Hotel AG is currently generating about -0.01 per unit of volatility. If you would invest 130.00 in MHP Hotel AG on September 1, 2024 and sell it today you would lose (11.00) from holding MHP Hotel AG or give up 8.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. MHP Hotel AG
Performance |
| Timeline |
| Superior Plus Corp |
| MHP Hotel AG |
Superior Plus and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and MHP Hotel
The main advantage of trading using opposite Superior Plus and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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