Correlation Between MHP Hotel and TRAVEL +
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By analyzing existing cross correlation between MHP Hotel AG and TRAVEL LEISURE DL 01, you can compare the effects of market volatilities on MHP Hotel and TRAVEL + 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 TRAVEL +. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and TRAVEL +.
Diversification Opportunities for MHP Hotel and TRAVEL +
Modest diversification
The 3 months correlation between MHP and TRAVEL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and TRAVEL LEISURE DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL LEISURE DL 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 TRAVEL +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVEL LEISURE DL has no effect on the direction of MHP Hotel i.e., MHP Hotel and TRAVEL + go up and down completely randomly.
Pair Corralation between MHP Hotel and TRAVEL +
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 2.01 times more return on investment than TRAVEL +. However, MHP Hotel is 2.01 times more volatile than TRAVEL LEISURE DL 01. It trades about 0.23 of its potential returns per unit of risk. TRAVEL LEISURE DL 01 is currently generating about -0.09 per unit of risk. If you would invest 117.00 in MHP Hotel AG on October 16, 2024 and sell it today you would earn a total of 12.00 from holding MHP Hotel AG or generate 10.26% 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. TRAVEL LEISURE DL 01
Performance |
| Timeline |
| MHP Hotel AG |
| TRAVEL LEISURE DL |
MHP Hotel and TRAVEL + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and TRAVEL +
The main advantage of trading using opposite MHP Hotel and TRAVEL + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, TRAVEL + 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 TRAVEL + will offset losses from the drop in TRAVEL +'s long position.| MHP Hotel vs. Yuexiu Transport Infrastructure | MHP Hotel vs. Perseus Mining Limited | MHP Hotel vs. Gold Road Resources | MHP Hotel vs. Harmony Gold Mining |
| TRAVEL + vs. MHP Hotel AG | TRAVEL + vs. DeVry Education Group | TRAVEL + vs. Wyndham Hotels Resorts | TRAVEL + vs. G8 EDUCATION |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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