Correlation Between MHP Hotel and GOLD ROAD
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By analyzing existing cross correlation between MHP Hotel AG and GOLD ROAD RES, you can compare the effects of market volatilities on MHP Hotel and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and GOLD ROAD.
Diversification Opportunities for MHP Hotel and GOLD ROAD
Significant diversification
The 3 months correlation between MHP and GOLD is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of MHP Hotel i.e., MHP Hotel and GOLD ROAD go up and down completely randomly.
Pair Corralation between MHP Hotel and GOLD ROAD
Assuming the 90 days trading horizon MHP Hotel AG is expected to under-perform the GOLD ROAD. In addition to that, MHP Hotel is 1.06 times more volatile than GOLD ROAD RES. It trades about 0.0 of its total potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.06 per unit of volatility. If you would invest 95.00 in GOLD ROAD RES on September 3, 2024 and sell it today you would earn a total of 18.00 from holding GOLD ROAD RES or generate 18.95% 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. GOLD ROAD RES
Performance |
| Timeline |
| MHP Hotel AG |
| GOLD ROAD RES |
MHP Hotel and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and GOLD ROAD
The main advantage of trading using opposite MHP Hotel and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| MHP Hotel vs. CANASIL RESOURCES | MHP Hotel vs. Gossan Resources | MHP Hotel vs. DevEx Resources Limited | MHP Hotel vs. KTL GLOBAL |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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