Correlation Between MHP Hotel and Ultra Clean
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By analyzing existing cross correlation between MHP Hotel AG and Ultra Clean Holdings, you can compare the effects of market volatilities on MHP Hotel and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Ultra Clean.
Diversification Opportunities for MHP Hotel and Ultra Clean
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MHP and Ultra is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of MHP Hotel i.e., MHP Hotel and Ultra Clean go up and down completely randomly.
Pair Corralation between MHP Hotel and Ultra Clean
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 0.97 times more return on investment than Ultra Clean. However, MHP Hotel AG is 1.03 times less risky than Ultra Clean. It trades about 0.1 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.15 per unit of risk. If you would invest 123.00 in MHP Hotel AG on November 1, 2024 and sell it today you would earn a total of 6.00 from holding MHP Hotel AG or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Ultra Clean Holdings
Performance |
| Timeline |
| MHP Hotel AG |
| Ultra Clean Holdings |
MHP Hotel and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Ultra Clean
The main advantage of trading using opposite MHP Hotel and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| MHP Hotel vs. GungHo Online Entertainment | MHP Hotel vs. SPARTAN STORES | MHP Hotel vs. CODERE ONLINE LUX | MHP Hotel vs. Carsales |
| Ultra Clean vs. Plastic Omnium | Ultra Clean vs. The Yokohama Rubber | Ultra Clean vs. Salesforce | Ultra Clean vs. TRADELINK ELECTRON |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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