Correlation Between MHP Hotel and Air Lease
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By analyzing existing cross correlation between MHP Hotel AG and Air Lease, you can compare the effects of market volatilities on MHP Hotel and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Air Lease.
Diversification Opportunities for MHP Hotel and Air Lease
Good diversification
The 3 months correlation between MHP and Air is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of MHP Hotel i.e., MHP Hotel and Air Lease go up and down completely randomly.
Pair Corralation between MHP Hotel and Air Lease
Assuming the 90 days trading horizon MHP Hotel is expected to generate 13.25 times less return on investment than Air Lease. In addition to that, MHP Hotel is 1.75 times more volatile than Air Lease. It trades about 0.02 of its total potential returns per unit of risk. Air Lease is currently generating about 0.39 per unit of volatility. If you would invest 4,120 in Air Lease on August 28, 2024 and sell it today you would earn a total of 720.00 from holding Air Lease or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MHP Hotel AG vs. Air Lease
Performance |
| Timeline |
| MHP Hotel AG |
| Air Lease |
MHP Hotel and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Air Lease
The main advantage of trading using opposite MHP Hotel and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's 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 |
| Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech | Air Lease vs. SIVERS SEMICONDUCTORS AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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