Correlation Between Air Lease and MHP Hotel
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By analyzing existing cross correlation between Air Lease and MHP Hotel AG, you can compare the effects of market volatilities on Air Lease 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 Air Lease with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and MHP Hotel.
Diversification Opportunities for Air Lease and MHP Hotel
Good diversification
The 3 months correlation between Air and MHP is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease 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 Air Lease 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 Air Lease 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 Air Lease i.e., Air Lease and MHP Hotel go up and down completely randomly.
Pair Corralation between Air Lease and MHP Hotel
Assuming the 90 days trading horizon Air Lease is expected to generate 0.49 times more return on investment than MHP Hotel. However, Air Lease is 2.04 times less risky than MHP Hotel. It trades about 0.24 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.05 per unit of risk. If you would invest 4,080 in Air Lease on August 28, 2024 and sell it today you would earn a total of 760.00 from holding Air Lease or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Air Lease vs. MHP Hotel AG
Performance |
| Timeline |
| Air Lease |
| MHP Hotel AG |
Air Lease and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and MHP Hotel
The main advantage of trading using opposite Air Lease and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease 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.| Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech | Air Lease vs. SIVERS SEMICONDUCTORS AB |
| MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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