Correlation Between MHP Hotel and National Bank
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By analyzing existing cross correlation between MHP Hotel AG and National Bank Holdings, you can compare the effects of market volatilities on MHP Hotel and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and National Bank.
Diversification Opportunities for MHP Hotel and National Bank
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MHP and National is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank Holdings has no effect on the direction of MHP Hotel i.e., MHP Hotel and National Bank go up and down completely randomly.
Pair Corralation between MHP Hotel and National Bank
Assuming the 90 days trading horizon MHP Hotel is expected to generate 3.26 times less return on investment than National Bank. In addition to that, MHP Hotel is 1.09 times more volatile than National Bank Holdings. It trades about 0.04 of its total potential returns per unit of risk. National Bank Holdings is currently generating about 0.14 per unit of volatility. If you would invest 4,120 in National Bank Holdings on August 31, 2024 and sell it today you would earn a total of 380.00 from holding National Bank Holdings or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. National Bank Holdings
Performance |
| Timeline |
| MHP Hotel AG |
| National Bank Holdings |
MHP Hotel and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and National Bank
The main advantage of trading using opposite MHP Hotel and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
| National Bank vs. Fifth Third Bancorp | National Bank vs. Regions Financial | National Bank vs. Superior Plus Corp | National Bank vs. Origin Agritech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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