Correlation Between BOSTON BEER and MHP Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between BOSTON BEER A and MHP Hotel AG, you can compare the effects of market volatilities on BOSTON BEER 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 BOSTON BEER with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOSTON BEER and MHP Hotel.
Diversification Opportunities for BOSTON BEER and MHP Hotel
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BOSTON and MHP is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BOSTON BEER A 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 BOSTON BEER 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 BOSTON BEER A 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 BOSTON BEER i.e., BOSTON BEER and MHP Hotel go up and down completely randomly.
Pair Corralation between BOSTON BEER and MHP Hotel
Assuming the 90 days trading horizon BOSTON BEER A is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, BOSTON BEER A is 1.25 times less risky than MHP Hotel. The stock trades about -0.01 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 125.00 in MHP Hotel AG on October 13, 2024 and sell it today you would earn a total of 4.00 from holding MHP Hotel AG or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOSTON BEER A vs. MHP Hotel AG
Performance |
| Timeline |
| BOSTON BEER A |
| MHP Hotel AG |
BOSTON BEER and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOSTON BEER and MHP Hotel
The main advantage of trading using opposite BOSTON BEER and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOSTON BEER 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.| BOSTON BEER vs. Ameriprise Financial | BOSTON BEER vs. Sun Life Financial | BOSTON BEER vs. Synchrony Financial | BOSTON BEER vs. SYSTEMAIR AB |
| MHP Hotel vs. Suntory Beverage Food | MHP Hotel vs. OPKO HEALTH | MHP Hotel vs. BOSTON BEER A | MHP Hotel vs. Fevertree Drinks PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |