Correlation Between MHP Hotel and T-Mobile
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By analyzing existing cross correlation between MHP Hotel AG and T Mobile, you can compare the effects of market volatilities on MHP Hotel and T-Mobile 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 T-Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and T-Mobile.
Diversification Opportunities for MHP Hotel and T-Mobile
Good diversification
The 3 months correlation between MHP and T-Mobile is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T-Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of MHP Hotel i.e., MHP Hotel and T-Mobile go up and down completely randomly.
Pair Corralation between MHP Hotel and T-Mobile
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.66 times more return on investment than T-Mobile. However, MHP Hotel is 1.66 times more volatile than T Mobile. It trades about 0.17 of its potential returns per unit of risk. T Mobile is currently generating about -0.04 per unit of risk. If you would invest 119.00 in MHP Hotel AG on October 19, 2024 and sell it today you would earn a total of 9.00 from holding MHP Hotel AG or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MHP Hotel AG vs. T Mobile
Performance |
| Timeline |
| MHP Hotel AG |
| T Mobile |
MHP Hotel and T-Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and T-Mobile
The main advantage of trading using opposite MHP Hotel and T-Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, T-Mobile 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 T-Mobile will offset losses from the drop in T-Mobile's long position.| MHP Hotel vs. Dairy Farm International | MHP Hotel vs. CHRYSALIS INVESTMENTS LTD | MHP Hotel vs. Australian Agricultural | MHP Hotel vs. AGNC INVESTMENT |
| T-Mobile vs. ONWARD MEDICAL BV | T-Mobile vs. MHP Hotel AG | T-Mobile vs. ETFS Coffee ETC | T-Mobile vs. COVIVIO HOTELS INH |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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