Correlation Between MHP Hotel and DALATA HOTEL
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By analyzing existing cross correlation between MHP Hotel AG and DALATA HOTEL, you can compare the effects of market volatilities on MHP Hotel and DALATA HOTEL 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 DALATA HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and DALATA HOTEL.
Diversification Opportunities for MHP Hotel and DALATA HOTEL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MHP and DALATA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and DALATA HOTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DALATA HOTEL 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 DALATA HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DALATA HOTEL has no effect on the direction of MHP Hotel i.e., MHP Hotel and DALATA HOTEL go up and down completely randomly.
Pair Corralation between MHP Hotel and DALATA HOTEL
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.0 times more return on investment than DALATA HOTEL. However, MHP Hotel is 1.0 times more volatile than DALATA HOTEL. It trades about 0.1 of its potential returns per unit of risk. DALATA HOTEL is currently generating about -0.03 per unit of risk. If you would invest 119.00 in MHP Hotel AG on October 26, 2024 and sell it today you would earn a total of 5.00 from holding MHP Hotel AG or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. DALATA HOTEL
Performance |
| Timeline |
| MHP Hotel AG |
| DALATA HOTEL |
MHP Hotel and DALATA HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and DALATA HOTEL
The main advantage of trading using opposite MHP Hotel and DALATA HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, DALATA HOTEL 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 DALATA HOTEL will offset losses from the drop in DALATA HOTEL's long position.| MHP Hotel vs. MCEWEN MINING INC | MHP Hotel vs. Ribbon Communications | MHP Hotel vs. MAVEN WIRELESS SWEDEN | MHP Hotel vs. Zoom Video Communications |
| DALATA HOTEL vs. Coor Service Management | DALATA HOTEL vs. CeoTronics AG | DALATA HOTEL vs. AGF Management Limited | DALATA HOTEL vs. Meli Hotels International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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