Correlation Between Alfa Financial and MHP Hotel
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By analyzing existing cross correlation between Alfa Financial Software and MHP Hotel AG, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and MHP Hotel.
Diversification Opportunities for Alfa Financial and MHP Hotel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alfa and MHP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software 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 Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and MHP Hotel go up and down completely randomly.
Pair Corralation between Alfa Financial and MHP Hotel
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 0.72 times more return on investment than MHP Hotel. However, Alfa Financial Software is 1.38 times less risky than MHP Hotel. It trades about 0.58 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.18 per unit of risk. If you would invest 230.00 in Alfa Financial Software on November 18, 2024 and sell it today you would earn a total of 54.00 from holding Alfa Financial Software or generate 23.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. MHP Hotel AG
Performance |
| Timeline |
| Alfa Financial Software |
| MHP Hotel AG |
Alfa Financial and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and MHP Hotel
The main advantage of trading using opposite Alfa Financial and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Peijia Medical Limited | Alfa Financial vs. USWE SPORTS AB | Alfa Financial vs. IMAGIN MEDICAL INC | Alfa Financial vs. Gaztransport Technigaz SA |
| MHP Hotel vs. DEVRY EDUCATION GRP | MHP Hotel vs. AGNC INVESTMENT | MHP Hotel vs. PennyMac Mortgage Investment | MHP Hotel vs. Scottish Mortgage 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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