Correlation Between MHP Hotel and CARSALESCOM
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By analyzing existing cross correlation between MHP Hotel AG and CARSALESCOM, you can compare the effects of market volatilities on MHP Hotel and CARSALESCOM 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 CARSALESCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and CARSALESCOM.
Diversification Opportunities for MHP Hotel and CARSALESCOM
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MHP and CARSALESCOM is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and CARSALESCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARSALESCOM 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 CARSALESCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARSALESCOM has no effect on the direction of MHP Hotel i.e., MHP Hotel and CARSALESCOM go up and down completely randomly.
Pair Corralation between MHP Hotel and CARSALESCOM
Assuming the 90 days trading horizon MHP Hotel is expected to generate 5.87 times less return on investment than CARSALESCOM. In addition to that, MHP Hotel is 1.54 times more volatile than CARSALESCOM. It trades about 0.01 of its total potential returns per unit of risk. CARSALESCOM is currently generating about 0.08 per unit of volatility. If you would invest 1,236 in CARSALESCOM on September 21, 2024 and sell it today you would earn a total of 1,004 from holding CARSALESCOM or generate 81.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MHP Hotel AG vs. CARSALESCOM
Performance |
| Timeline |
| MHP Hotel AG |
| CARSALESCOM |
MHP Hotel and CARSALESCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MHP Hotel and CARSALESCOM
The main advantage of trading using opposite MHP Hotel and CARSALESCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, CARSALESCOM 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 CARSALESCOM will offset losses from the drop in CARSALESCOM's long position.| MHP Hotel vs. COLUMBIA SPORTSWEAR | MHP Hotel vs. Thai Beverage Public | MHP Hotel vs. USWE SPORTS AB | MHP Hotel vs. Monster Beverage Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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