Correlation Between MHP Hotel and Xenia Hotels
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By analyzing existing cross correlation between MHP Hotel AG and Xenia Hotels Resorts, you can compare the effects of market volatilities on MHP Hotel and Xenia Hotels 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 Xenia Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Xenia Hotels.
Diversification Opportunities for MHP Hotel and Xenia Hotels
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MHP and Xenia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts 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 Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of MHP Hotel i.e., MHP Hotel and Xenia Hotels go up and down completely randomly.
Pair Corralation between MHP Hotel and Xenia Hotels
Assuming the 90 days trading horizon MHP Hotel AG is expected to under-perform the Xenia Hotels. In addition to that, MHP Hotel is 1.4 times more volatile than Xenia Hotels Resorts. It trades about -0.01 of its total potential returns per unit of risk. Xenia Hotels Resorts is currently generating about 0.04 per unit of volatility. If you would invest 1,266 in Xenia Hotels Resorts on August 26, 2024 and sell it today you would earn a total of 114.00 from holding Xenia Hotels Resorts or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Xenia Hotels Resorts
Performance |
| Timeline |
| MHP Hotel AG |
| Xenia Hotels Resorts |
MHP Hotel and Xenia Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Xenia Hotels
The main advantage of trading using opposite MHP Hotel and Xenia Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Xenia Hotels 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 Xenia Hotels will offset losses from the drop in Xenia Hotels' long position.| MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Sunstone Hotel Investors | Xenia Hotels vs. ASHFORD HOSPITTRUST |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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