Correlation Between MHP Hotel and REGAL HOTEL
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By analyzing existing cross correlation between MHP Hotel AG and REGAL HOTEL INTL, you can compare the effects of market volatilities on MHP Hotel and REGAL HOTEL 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 HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and REGAL HOTEL.
Diversification Opportunities for MHP Hotel and REGAL HOTEL
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and REGAL is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and REGAL HOTEL INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL HOTEL INTL 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 HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL HOTEL INTL has no effect on the direction of MHP Hotel i.e., MHP Hotel and REGAL HOTEL go up and down completely randomly.
Pair Corralation between MHP Hotel and REGAL HOTEL
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 2.33 times more return on investment than REGAL HOTEL. However, MHP Hotel is 2.33 times more volatile than REGAL HOTEL INTL. It trades about 0.04 of its potential returns per unit of risk. REGAL HOTEL INTL is currently generating about 0.01 per unit of risk. If you would invest 114.00 in MHP Hotel AG on August 31, 2024 and sell it today you would earn a total of 2.00 from holding MHP Hotel AG or generate 1.75% 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 HOTEL INTL
Performance |
| Timeline |
| MHP Hotel AG |
| REGAL HOTEL INTL |
MHP Hotel and REGAL HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and REGAL HOTEL
The main advantage of trading using opposite MHP Hotel and REGAL HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, REGAL HOTEL 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 HOTEL will offset losses from the drop in REGAL HOTEL's long position.| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
| REGAL HOTEL vs. Webster Financial | REGAL HOTEL vs. OFFICE DEPOT | REGAL HOTEL vs. Haier Smart Home | REGAL HOTEL vs. National Bank Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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