Correlation Between MHP Hotel and Regal Hotels
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By analyzing existing cross correlation between MHP Hotel AG and Regal Hotels International, you can compare the effects of market volatilities on MHP Hotel and Regal Hotels 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 Regal Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Regal Hotels.
Diversification Opportunities for MHP Hotel and Regal Hotels
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and Regal is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Regal Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Hotels Interna 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 Regal Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Hotels Interna has no effect on the direction of MHP Hotel i.e., MHP Hotel and Regal Hotels go up and down completely randomly.
Pair Corralation between MHP Hotel and Regal Hotels
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 2.65 times more return on investment than Regal Hotels. However, MHP Hotel is 2.65 times more volatile than Regal Hotels International. It trades about 0.06 of its potential returns per unit of risk. Regal Hotels International is currently generating about 0.13 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. Regal Hotels International
Performance |
| Timeline |
| MHP Hotel AG |
| Regal Hotels Interna |
MHP Hotel and Regal Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Regal Hotels
The main advantage of trading using opposite MHP Hotel and Regal Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Regal Hotels 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 Regal Hotels will offset losses from the drop in Regal Hotels' 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 |
| Regal Hotels vs. Hyatt Hotels | Regal Hotels vs. InterContinental Hotels Group | Regal Hotels vs. INTERCONT HOTELS | Regal Hotels vs. Accor SA |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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