Correlation Between MHP Hotel and FORMPIPE SOFTWARE
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By analyzing existing cross correlation between MHP Hotel AG and FORMPIPE SOFTWARE AB, you can compare the effects of market volatilities on MHP Hotel and FORMPIPE SOFTWARE 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 FORMPIPE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and FORMPIPE SOFTWARE.
Diversification Opportunities for MHP Hotel and FORMPIPE SOFTWARE
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MHP and FORMPIPE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and FORMPIPE SOFTWARE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORMPIPE SOFTWARE 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 FORMPIPE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORMPIPE SOFTWARE has no effect on the direction of MHP Hotel i.e., MHP Hotel and FORMPIPE SOFTWARE go up and down completely randomly.
Pair Corralation between MHP Hotel and FORMPIPE SOFTWARE
Assuming the 90 days trading horizon MHP Hotel is expected to generate 2.58 times less return on investment than FORMPIPE SOFTWARE. In addition to that, MHP Hotel is 1.08 times more volatile than FORMPIPE SOFTWARE AB. It trades about 0.01 of its total potential returns per unit of risk. FORMPIPE SOFTWARE AB is currently generating about 0.04 per unit of volatility. If you would invest 162.00 in FORMPIPE SOFTWARE AB on August 24, 2024 and sell it today you would earn a total of 54.00 from holding FORMPIPE SOFTWARE AB or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. FORMPIPE SOFTWARE AB
Performance |
| Timeline |
| MHP Hotel AG |
| FORMPIPE SOFTWARE |
MHP Hotel and FORMPIPE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and FORMPIPE SOFTWARE
The main advantage of trading using opposite MHP Hotel and FORMPIPE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, FORMPIPE SOFTWARE 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 FORMPIPE SOFTWARE will offset losses from the drop in FORMPIPE SOFTWARE'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 |
| FORMPIPE SOFTWARE vs. Salesforce | FORMPIPE SOFTWARE vs. Nemetschek AG ON | FORMPIPE SOFTWARE vs. PagerDuty | FORMPIPE SOFTWARE vs. Superior Plus Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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