Correlation Between MHP Hotel and Sony Group
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By analyzing existing cross correlation between MHP Hotel AG and Sony Group Corp, you can compare the effects of market volatilities on MHP Hotel and Sony Group 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 Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Sony Group.
Diversification Opportunities for MHP Hotel and Sony Group
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MHP and Sony is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Sony Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group Corp 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 Sony Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group Corp has no effect on the direction of MHP Hotel i.e., MHP Hotel and Sony Group go up and down completely randomly.
Pair Corralation between MHP Hotel and Sony Group
Assuming the 90 days trading horizon MHP Hotel is expected to generate 2.17 times less return on investment than Sony Group. In addition to that, MHP Hotel is 1.43 times more volatile than Sony Group Corp. It trades about 0.09 of its total potential returns per unit of risk. Sony Group Corp is currently generating about 0.27 per unit of volatility. If you would invest 2,010 in Sony Group Corp on November 9, 2024 and sell it today you would earn a total of 190.00 from holding Sony Group Corp or generate 9.45% 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. Sony Group Corp
Performance |
| Timeline |
| MHP Hotel AG |
| Sony Group Corp |
MHP Hotel and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Sony Group
The main advantage of trading using opposite MHP Hotel and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Sony Group 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 Sony Group will offset losses from the drop in Sony Group's long position.| MHP Hotel vs. UNIQA INSURANCE GR | MHP Hotel vs. HANOVER INSURANCE | MHP Hotel vs. ARDAGH METAL PACDL 0001 | MHP Hotel vs. Singapore Reinsurance |
| Sony Group vs. YATRA ONLINE DL 0001 | Sony Group vs. GREENX METALS LTD | Sony Group vs. SERI INDUSTRIAL EO | Sony Group vs. CarsalesCom |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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