Correlation Between MHP Hotel and VIRG NATL
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By analyzing existing cross correlation between MHP Hotel AG and VIRG NATL BANKSH, you can compare the effects of market volatilities on MHP Hotel and VIRG NATL 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 VIRG NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and VIRG NATL.
Diversification Opportunities for MHP Hotel and VIRG NATL
Significant diversification
The 3 months correlation between MHP and VIRG is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and VIRG NATL BANKSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRG NATL BANKSH 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 VIRG NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRG NATL BANKSH has no effect on the direction of MHP Hotel i.e., MHP Hotel and VIRG NATL go up and down completely randomly.
Pair Corralation between MHP Hotel and VIRG NATL
Assuming the 90 days trading horizon MHP Hotel is expected to generate 2.94 times less return on investment than VIRG NATL. In addition to that, MHP Hotel is 1.2 times more volatile than VIRG NATL BANKSH. It trades about 0.04 of its total potential returns per unit of risk. VIRG NATL BANKSH is currently generating about 0.14 per unit of volatility. If you would invest 3,600 in VIRG NATL BANKSH on August 31, 2024 and sell it today you would earn a total of 300.00 from holding VIRG NATL BANKSH or generate 8.33% 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. VIRG NATL BANKSH
Performance |
| Timeline |
| MHP Hotel AG |
| VIRG NATL BANKSH |
MHP Hotel and VIRG NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and VIRG NATL
The main advantage of trading using opposite MHP Hotel and VIRG NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, VIRG NATL 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 VIRG NATL will offset losses from the drop in VIRG NATL's long position.| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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