Correlation Between MHP Hotel and Flutter Entertainment
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By analyzing existing cross correlation between MHP Hotel AG and Flutter Entertainment PLC, you can compare the effects of market volatilities on MHP Hotel and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Flutter Entertainment.
Diversification Opportunities for MHP Hotel and Flutter Entertainment
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MHP and Flutter is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of MHP Hotel i.e., MHP Hotel and Flutter Entertainment go up and down completely randomly.
Pair Corralation between MHP Hotel and Flutter Entertainment
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.67 times more return on investment than Flutter Entertainment. However, MHP Hotel is 1.67 times more volatile than Flutter Entertainment PLC. It trades about 0.26 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.0 per unit of risk. If you would invest 124.00 in MHP Hotel AG on November 28, 2024 and sell it today you would earn a total of 25.00 from holding MHP Hotel AG or generate 20.16% 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. Flutter Entertainment PLC
Performance |
| Timeline |
| MHP Hotel AG |
| Flutter Entertainment PLC |
MHP Hotel and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Flutter Entertainment
The main advantage of trading using opposite MHP Hotel and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| MHP Hotel vs. Evolution Mining Limited | MHP Hotel vs. OFFICE DEPOT | MHP Hotel vs. NORTHISLE PERGOLD INC | MHP Hotel vs. FIREWEED METALS P |
| Flutter Entertainment vs. EPSILON HEALTHCARE LTD | Flutter Entertainment vs. OPKO HEALTH | Flutter Entertainment vs. Molina Healthcare | Flutter Entertainment vs. United Utilities 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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