Correlation Between MHP Hotel and Sixt Leasing
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By analyzing existing cross correlation between MHP Hotel AG and Sixt Leasing SE, you can compare the effects of market volatilities on MHP Hotel and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Sixt Leasing.
Diversification Opportunities for MHP Hotel and Sixt Leasing
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between MHP and Sixt is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of MHP Hotel i.e., MHP Hotel and Sixt Leasing go up and down completely randomly.
Pair Corralation between MHP Hotel and Sixt Leasing
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.86 times more return on investment than Sixt Leasing. However, MHP Hotel is 1.86 times more volatile than Sixt Leasing SE. It trades about 0.06 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.2 per unit of risk. If you would invest 116.00 in MHP Hotel AG on August 25, 2024 and sell it today you would earn a total of 4.00 from holding MHP Hotel AG or generate 3.45% 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. Sixt Leasing SE
Performance |
| Timeline |
| MHP Hotel AG |
| Sixt Leasing SE |
MHP Hotel and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Sixt Leasing
The main advantage of trading using opposite MHP Hotel and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing'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 |
| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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