Correlation Between MHP Hotel and Gladstone Commercial
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By analyzing existing cross correlation between MHP Hotel AG and Gladstone Commercial, you can compare the effects of market volatilities on MHP Hotel and Gladstone Commercial 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 Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Gladstone Commercial.
Diversification Opportunities for MHP Hotel and Gladstone Commercial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MHP and Gladstone is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Gladstone Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial 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 Gladstone Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Commercial has no effect on the direction of MHP Hotel i.e., MHP Hotel and Gladstone Commercial go up and down completely randomly.
Pair Corralation between MHP Hotel and Gladstone Commercial
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 2.16 times more return on investment than Gladstone Commercial. However, MHP Hotel is 2.16 times more volatile than Gladstone Commercial. It trades about 0.18 of its potential returns per unit of risk. Gladstone Commercial is currently generating about -0.11 per unit of risk. If you would invest 118.00 in MHP Hotel AG on October 9, 2024 and sell it today you would earn a total of 9.00 from holding MHP Hotel AG or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Gladstone Commercial
Performance |
| Timeline |
| MHP Hotel AG |
| Gladstone Commercial |
MHP Hotel and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Gladstone Commercial
The main advantage of trading using opposite MHP Hotel and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Gladstone Commercial 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 Gladstone Commercial will offset losses from the drop in Gladstone Commercial's long position.| MHP Hotel vs. Genertec Universal Medical | MHP Hotel vs. COLUMBIA SPORTSWEAR | MHP Hotel vs. BII Railway Transportation | MHP Hotel vs. Columbia Sportswear |
| Gladstone Commercial vs. Cairo Communication SpA | Gladstone Commercial vs. Zijin Mining Group | Gladstone Commercial vs. Ribbon Communications | Gladstone Commercial vs. FIREWEED METALS P |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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