Correlation Between MHP Hotel and ALEFARM BREWING
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By analyzing existing cross correlation between MHP Hotel AG and ALEFARM BREWING DK 05, you can compare the effects of market volatilities on MHP Hotel and ALEFARM BREWING 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 ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and ALEFARM BREWING.
Diversification Opportunities for MHP Hotel and ALEFARM BREWING
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and ALEFARM is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK 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 ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of MHP Hotel i.e., MHP Hotel and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between MHP Hotel and ALEFARM BREWING
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 0.67 times more return on investment than ALEFARM BREWING. However, MHP Hotel AG is 1.49 times less risky than ALEFARM BREWING. It trades about 0.19 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about 0.11 per unit of risk. If you would invest 119.00 in MHP Hotel AG on October 14, 2024 and sell it today you would earn a total of 10.00 from holding MHP Hotel AG or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. ALEFARM BREWING DK 05
Performance |
| Timeline |
| MHP Hotel AG |
| ALEFARM BREWING DK |
MHP Hotel and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and ALEFARM BREWING
The main advantage of trading using opposite MHP Hotel and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.| MHP Hotel vs. CarsalesCom | MHP Hotel vs. China Resources Beer | MHP Hotel vs. Tsingtao Brewery | MHP Hotel vs. Clean Energy Fuels |
| ALEFARM BREWING vs. DALATA HOTEL | ALEFARM BREWING vs. MHP Hotel AG | ALEFARM BREWING vs. UNIQA INSURANCE GR | ALEFARM BREWING vs. InterContinental Hotels Group |
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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