Correlation Between MHP Hotel and Seven West
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By analyzing existing cross correlation between MHP Hotel AG and Seven West Media, you can compare the effects of market volatilities on MHP Hotel and Seven West 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 Seven West. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Seven West.
Diversification Opportunities for MHP Hotel and Seven West
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MHP and Seven is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Seven West Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven West Media 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 Seven West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven West Media has no effect on the direction of MHP Hotel i.e., MHP Hotel and Seven West go up and down completely randomly.
Pair Corralation between MHP Hotel and Seven West
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 0.73 times more return on investment than Seven West. However, MHP Hotel AG is 1.36 times less risky than Seven West. It trades about 0.26 of its potential returns per unit of risk. Seven West Media is currently generating about 0.12 per unit of risk. If you would invest 124.00 in MHP Hotel AG on November 28, 2024 and sell it today you would earn a total of 25.00 from holding MHP Hotel AG or generate 20.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. Seven West Media
Performance |
| Timeline |
| MHP Hotel AG |
| Seven West Media |
MHP Hotel and Seven West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and Seven West
The main advantage of trading using opposite MHP Hotel and Seven West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Seven West 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 Seven West will offset losses from the drop in Seven West's long position.| MHP Hotel vs. Evolution Mining Limited | MHP Hotel vs. OFFICE DEPOT | MHP Hotel vs. NORTHISLE PERGOLD INC | MHP Hotel vs. FIREWEED METALS P |
| Seven West vs. ScanSource | Seven West vs. Peijia Medical Limited | Seven West vs. CompuGroup Medical SE | Seven West vs. PULSION Medical Systems |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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