Correlation Between USWE SPORTS and MHP Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between USWE SPORTS AB and MHP Hotel AG, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and MHP Hotel.
Diversification Opportunities for USWE SPORTS and MHP Hotel
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between USWE and MHP is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB 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 USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and MHP Hotel go up and down completely randomly.
Pair Corralation between USWE SPORTS and MHP Hotel
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, USWE SPORTS AB is 1.6 times less risky than MHP Hotel. The stock trades about -0.05 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 113.00 in MHP Hotel AG on September 21, 2024 and sell it today you would earn a total of 4.00 from holding MHP Hotel AG or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. MHP Hotel AG
Performance |
| Timeline |
| USWE SPORTS AB |
| MHP Hotel AG |
USWE SPORTS and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and MHP Hotel
The main advantage of trading using opposite USWE SPORTS and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. DIVERSIFIED ROYALTY | USWE SPORTS vs. EIDESVIK OFFSHORE NK | USWE SPORTS vs. PennantPark Investment | USWE SPORTS vs. XLMedia PLC |
| MHP Hotel vs. COLUMBIA SPORTSWEAR | MHP Hotel vs. Thai Beverage Public | MHP Hotel vs. USWE SPORTS AB | MHP Hotel vs. Monster Beverage 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |