Correlation Between MHP Hotel and G III
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By analyzing existing cross correlation between MHP Hotel AG and G III Apparel Group, you can compare the effects of market volatilities on MHP Hotel and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and G III.
Diversification Opportunities for MHP Hotel and G III
Very weak diversification
The 3 months correlation between MHP and GI4 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of MHP Hotel i.e., MHP Hotel and G III go up and down completely randomly.
Pair Corralation between MHP Hotel and G III
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.67 times more return on investment than G III. However, MHP Hotel is 1.67 times more volatile than G III Apparel Group. It trades about 0.04 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.05 per unit of risk. If you would invest 127.00 in MHP Hotel AG on November 7, 2024 and sell it today you would earn a total of 2.00 from holding MHP Hotel AG or generate 1.57% 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. G III Apparel Group
Performance |
| Timeline |
| MHP Hotel AG |
| G III Apparel |
MHP Hotel and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and G III
The main advantage of trading using opposite MHP Hotel and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, G III 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 G III will offset losses from the drop in G III'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 |
| G III vs. ADRIATIC METALS LS 013355 | G III vs. NORTHEAST UTILITIES | G III vs. SCANSOURCE | G III vs. Air Transport Services |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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