Correlation Between MHP Hotel and UDR
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By analyzing existing cross correlation between MHP Hotel AG and UDR Inc, you can compare the effects of market volatilities on MHP Hotel and UDR 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 UDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and UDR.
Diversification Opportunities for MHP Hotel and UDR
Very good diversification
The 3 months correlation between MHP and UDR is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and UDR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UDR Inc 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 UDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UDR Inc has no effect on the direction of MHP Hotel i.e., MHP Hotel and UDR go up and down completely randomly.
Pair Corralation between MHP Hotel and UDR
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 1.87 times more return on investment than UDR. However, MHP Hotel is 1.87 times more volatile than UDR Inc. It trades about 0.09 of its potential returns per unit of risk. UDR Inc is currently generating about -0.05 per unit of risk. If you would invest 123.00 in MHP Hotel AG on November 3, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. UDR Inc
Performance |
| Timeline |
| MHP Hotel AG |
| UDR Inc |
MHP Hotel and UDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and UDR
The main advantage of trading using opposite MHP Hotel and UDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, UDR 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 UDR will offset losses from the drop in UDR's long position.| MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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