Correlation Between MHP Hotel and Corsair Gaming

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MHP Hotel and Corsair Gaming at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MHP Hotel and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MHP Hotel AG and Corsair Gaming, you can compare the effects of market volatilities on MHP Hotel and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Corsair Gaming.

Diversification Opportunities for MHP Hotel and Corsair Gaming

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between MHP and Corsair is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of MHP Hotel i.e., MHP Hotel and Corsair Gaming go up and down completely randomly.

Pair Corralation between MHP Hotel and Corsair Gaming

Assuming the 90 days trading horizon MHP Hotel is expected to generate 5.15 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, MHP Hotel AG is 1.22 times less risky than Corsair Gaming. It trades about 0.09 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  686.00  in Corsair Gaming on November 6, 2024 and sell it today you would earn a total of  206.00  from holding Corsair Gaming or generate 30.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

MHP Hotel AG  vs.  Corsair Gaming

 Performance 
       Timeline  
MHP Hotel AG 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MHP Hotel AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, MHP Hotel exhibited solid returns over the last few months and may actually be approaching a breakup point.
Corsair Gaming 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Corsair Gaming are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Corsair Gaming reported solid returns over the last few months and may actually be approaching a breakup point.

MHP Hotel and Corsair Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MHP Hotel and Corsair Gaming

The main advantage of trading using opposite MHP Hotel and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.
MHP Hotel vs. Hitachi Construction Machinery
MHP Hotel vs. Tokyu Construction Co
MHP Hotel vs. COMPUTERSHARE
MHP Hotel vs. Hanison Construction Holdings
The idea behind MHP Hotel AG and Corsair Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Corsair Gaming vs. Molson Coors Beverage
Corsair Gaming vs. US FOODS HOLDING
Corsair Gaming vs. BRIT AMER TOBACCO
Corsair Gaming vs. United Natural Foods
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY