Correlation Between MHP Hotel and Sun Life
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By analyzing existing cross correlation between MHP Hotel AG and Sun Life Financial, you can compare the effects of market volatilities on MHP Hotel and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Sun Life.
Diversification Opportunities for MHP Hotel and Sun Life
Very weak diversification
The 3 months correlation between MHP and Sun is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of MHP Hotel i.e., MHP Hotel and Sun Life go up and down completely randomly.
Pair Corralation between MHP Hotel and Sun Life
Assuming the 90 days trading horizon MHP Hotel is expected to generate 1.48 times less return on investment than Sun Life. In addition to that, MHP Hotel is 2.29 times more volatile than Sun Life Financial. It trades about 0.05 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.16 per unit of volatility. If you would invest 5,175 in Sun Life Financial on September 22, 2024 and sell it today you would earn a total of 475.00 from holding Sun Life Financial or generate 9.18% 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. Sun Life Financial
Performance |
| Timeline |
| MHP Hotel AG |
| Sun Life Financial |
MHP Hotel and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Sun Life
The main advantage of trading using opposite MHP Hotel and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| MHP Hotel vs. China Communications Services | MHP Hotel vs. ECHO INVESTMENT ZY | MHP Hotel vs. Chunghwa Telecom Co | MHP Hotel vs. Gladstone Investment |
| Sun Life vs. Berkshire Hathaway | Sun Life vs. Berkshire Hathaway | Sun Life vs. Zurich Insurance Group | Sun Life vs. American International Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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