Correlation Between MHP Hotel and Hyatt Hotels
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By analyzing existing cross correlation between MHP Hotel AG and Hyatt Hotels, you can compare the effects of market volatilities on MHP Hotel and Hyatt 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 Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Hyatt Hotels.
Diversification Opportunities for MHP Hotel and Hyatt Hotels
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MHP and Hyatt is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels 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 Hyatt Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyatt Hotels has no effect on the direction of MHP Hotel i.e., MHP Hotel and Hyatt Hotels go up and down completely randomly.
Pair Corralation between MHP Hotel and Hyatt Hotels
Assuming the 90 days trading horizon MHP Hotel AG is expected to under-perform the Hyatt Hotels. In addition to that, MHP Hotel is 1.48 times more volatile than Hyatt Hotels. It trades about -0.01 of its total potential returns per unit of risk. Hyatt Hotels is currently generating about 0.06 per unit of volatility. If you would invest 13,281 in Hyatt Hotels on August 28, 2024 and sell it today you would earn a total of 1,544 from holding Hyatt Hotels or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
MHP Hotel AG vs. Hyatt Hotels
Performance |
| Timeline |
| MHP Hotel AG |
| Hyatt Hotels |
MHP Hotel and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Hyatt Hotels
The main advantage of trading using opposite MHP Hotel and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Hyatt 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 Hyatt Hotels will offset losses from the drop in Hyatt 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 |
| Hyatt Hotels vs. Chesapeake Utilities | Hyatt Hotels vs. MOLSON RS BEVERAGE | Hyatt Hotels vs. BJs Restaurants | Hyatt Hotels vs. Motorcar Parts of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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