Correlation Between MHP Hotel and Shenandoah Telecommunicatio
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By analyzing existing cross correlation between MHP Hotel AG and Shenandoah Telecommunications, you can compare the effects of market volatilities on MHP Hotel and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Shenandoah Telecommunicatio.
Diversification Opportunities for MHP Hotel and Shenandoah Telecommunicatio
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MHP and Shenandoah is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of MHP Hotel i.e., MHP Hotel and Shenandoah Telecommunicatio go up and down completely randomly.
Pair Corralation between MHP Hotel and Shenandoah Telecommunicatio
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.23 times more return on investment than Shenandoah Telecommunicatio. However, MHP Hotel is 1.23 times more volatile than Shenandoah Telecommunications. It trades about 0.22 of its potential returns per unit of risk. Shenandoah Telecommunications is currently generating about -0.19 per unit of risk. If you would invest 117.00 in MHP Hotel AG on October 16, 2024 and sell it today you would earn a total of 11.00 from holding MHP Hotel AG or generate 9.4% 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. Shenandoah Telecommunications
Performance |
| Timeline |
| MHP Hotel AG |
| Shenandoah Telecommunicatio |
MHP Hotel and Shenandoah Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Shenandoah Telecommunicatio
The main advantage of trading using opposite MHP Hotel and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's long position.| MHP Hotel vs. ARROW ELECTRONICS | MHP Hotel vs. KIMBALL ELECTRONICS | MHP Hotel vs. Delta Electronics Public | MHP Hotel vs. AOI Electronics Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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