Correlation Between MHP Hotel and Ares Management
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By analyzing existing cross correlation between MHP Hotel AG and Ares Management Corp, you can compare the effects of market volatilities on MHP Hotel and Ares Management 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 MHP Hotel with a short position of Ares Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Ares Management.
Diversification Opportunities for MHP Hotel and Ares Management
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MHP and Ares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Ares Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Management Corp and MHP Hotel 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 MHP Hotel AG are associated (or correlated) with Ares Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Management Corp has no effect on the direction of MHP Hotel i.e., MHP Hotel and Ares Management go up and down completely randomly.
Pair Corralation between MHP Hotel and Ares Management
Assuming the 90 days trading horizon MHP Hotel is expected to generate 2.12 times less return on investment than Ares Management. In addition to that, MHP Hotel is 1.26 times more volatile than Ares Management Corp. It trades about 0.05 of its total potential returns per unit of risk. Ares Management Corp is currently generating about 0.14 per unit of volatility. If you would invest 15,715 in Ares Management Corp on October 26, 2024 and sell it today you would earn a total of 3,087 from holding Ares Management Corp or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Ares Management Corp
Performance |
| Timeline |
| MHP Hotel AG |
| Ares Management Corp |
MHP Hotel and Ares Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Ares Management
The main advantage of trading using opposite MHP Hotel and Ares Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Ares Management 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 Ares Management will offset losses from the drop in Ares Management's long position.| MHP Hotel vs. MCEWEN MINING INC | MHP Hotel vs. Ribbon Communications | MHP Hotel vs. MAVEN WIRELESS SWEDEN | MHP Hotel vs. Zoom Video Communications |
| Ares Management vs. InterContinental Hotels Group | Ares Management vs. MHP Hotel AG | Ares Management vs. Dalata Hotel Group | Ares Management vs. REINET INVESTMENTS SCA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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