Correlation Between MHP Hotel and Jupiter Fund
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By analyzing existing cross correlation between MHP Hotel AG and Jupiter Fund Management, you can compare the effects of market volatilities on MHP Hotel and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Jupiter Fund.
Diversification Opportunities for MHP Hotel and Jupiter Fund
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and Jupiter is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of MHP Hotel i.e., MHP Hotel and Jupiter Fund go up and down completely randomly.
Pair Corralation between MHP Hotel and Jupiter Fund
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 0.94 times more return on investment than Jupiter Fund. However, MHP Hotel AG is 1.07 times less risky than Jupiter Fund. It trades about 0.02 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 119.00 in MHP Hotel AG on November 19, 2024 and sell it today you would earn a total of 17.00 from holding MHP Hotel AG or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Jupiter Fund Management
Performance |
| Timeline |
| MHP Hotel AG |
| Jupiter Fund Management |
MHP Hotel and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Jupiter Fund
The main advantage of trading using opposite MHP Hotel and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| MHP Hotel vs. Thai Beverage Public | MHP Hotel vs. CarsalesCom | MHP Hotel vs. United Utilities Group | MHP Hotel vs. CODERE ONLINE LUX |
| Jupiter Fund vs. GREENX METALS LTD | Jupiter Fund vs. Perseus Mining Limited | Jupiter Fund vs. GALENA MINING LTD | Jupiter Fund vs. Yanzhou Coal Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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