Correlation Between MHP Hotel and BANKINTER ADR
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By analyzing existing cross correlation between MHP Hotel AG and BANKINTER ADR 2007, you can compare the effects of market volatilities on MHP Hotel and BANKINTER ADR 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 BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and BANKINTER ADR.
Diversification Opportunities for MHP Hotel and BANKINTER ADR
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MHP and BANKINTER is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 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 BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of MHP Hotel i.e., MHP Hotel and BANKINTER ADR go up and down completely randomly.
Pair Corralation between MHP Hotel and BANKINTER ADR
Assuming the 90 days trading horizon MHP Hotel is expected to generate 1.73 times less return on investment than BANKINTER ADR. In addition to that, MHP Hotel is 1.76 times more volatile than BANKINTER ADR 2007. It trades about 0.1 of its total potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.31 per unit of volatility. If you would invest 725.00 in BANKINTER ADR 2007 on November 1, 2024 and sell it today you would earn a total of 70.00 from holding BANKINTER ADR 2007 or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. BANKINTER ADR 2007
Performance |
| Timeline |
| MHP Hotel AG |
| BANKINTER ADR 2007 |
MHP Hotel and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and BANKINTER ADR
The main advantage of trading using opposite MHP Hotel and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, BANKINTER ADR 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 BANKINTER ADR will offset losses from the drop in BANKINTER ADR's long position.| MHP Hotel vs. GungHo Online Entertainment | MHP Hotel vs. SPARTAN STORES | MHP Hotel vs. CODERE ONLINE LUX | MHP Hotel vs. Carsales |
| BANKINTER ADR vs. GOODYEAR T RUBBER | BANKINTER ADR vs. Heidelberg Materials AG | BANKINTER ADR vs. InterContinental Hotels Group | BANKINTER ADR vs. MHP Hotel AG |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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