Correlation Between MHP Hotel and Air Transport
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By analyzing existing cross correlation between MHP Hotel AG and Air Transport Services, you can compare the effects of market volatilities on MHP Hotel and Air Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Air Transport.
Diversification Opportunities for MHP Hotel and Air Transport
0.01 | Correlation Coefficient |
Significant 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 Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of MHP Hotel i.e., MHP Hotel and Air Transport go up and down completely randomly.
Pair Corralation between MHP Hotel and Air Transport
Assuming the 90 days trading horizon MHP Hotel AG is expected to under-perform the Air Transport. But the stock apears to be less risky and, when comparing its historical volatility, MHP Hotel AG is 1.32 times less risky than Air Transport. The stock trades about 0.0 of its potential returns per unit of risk. The Air Transport Services is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,210 in Air Transport Services on September 3, 2024 and sell it today you would earn a total of 870.00 from holding Air Transport Services or generate 71.9% 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. Air Transport Services
Performance |
| Timeline |
| MHP Hotel AG |
| Air Transport Services |
MHP Hotel and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Air Transport
The main advantage of trading using opposite MHP Hotel and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Air Transport 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 Transport will offset losses from the drop in Air Transport's long position.| MHP Hotel vs. CANASIL RESOURCES | MHP Hotel vs. Gossan Resources | MHP Hotel vs. DevEx Resources Limited | MHP Hotel vs. KTL GLOBAL |
| Air Transport vs. Computershare Limited | Air Transport vs. Ribbon Communications | Air Transport vs. Axcelis Technologies | Air Transport vs. Playtech plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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