Correlation Between MHP Hotel and QBE Insurance
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By analyzing existing cross correlation between MHP Hotel AG and QBE Insurance Group, you can compare the effects of market volatilities on MHP Hotel and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and QBE Insurance.
Diversification Opportunities for MHP Hotel and QBE Insurance
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MHP and QBE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance Group 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of MHP Hotel i.e., MHP Hotel and QBE Insurance go up and down completely randomly.
Pair Corralation between MHP Hotel and QBE Insurance
Assuming the 90 days trading horizon MHP Hotel is expected to generate 5.39 times less return on investment than QBE Insurance. In addition to that, MHP Hotel is 2.37 times more volatile than QBE Insurance Group. It trades about 0.04 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.5 per unit of volatility. If you would invest 1,030 in QBE Insurance Group on August 31, 2024 and sell it today you would earn a total of 180.00 from holding QBE Insurance Group or generate 17.48% 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. QBE Insurance Group
Performance |
| Timeline |
| MHP Hotel AG |
| QBE Insurance Group |
MHP Hotel and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and QBE Insurance
The main advantage of trading using opposite MHP Hotel and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance's long position.| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
| QBE Insurance vs. The Progressive | QBE Insurance vs. Fairfax Financial Holdings | QBE Insurance vs. Admiral Group plc | QBE Insurance vs. Insurance Australia 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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