Correlation Between Coor Service and MHP Hotel
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By analyzing existing cross correlation between Coor Service Management and MHP Hotel AG, you can compare the effects of market volatilities on Coor Service and MHP Hotel 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 Coor Service with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and MHP Hotel.
Diversification Opportunities for Coor Service and MHP Hotel
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coor and MHP is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel AG and Coor Service 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 Coor Service Management are associated (or correlated) with MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of Coor Service i.e., Coor Service and MHP Hotel go up and down completely randomly.
Pair Corralation between Coor Service and MHP Hotel
Assuming the 90 days horizon Coor Service Management is expected to generate 3.4 times more return on investment than MHP Hotel. However, Coor Service is 3.4 times more volatile than MHP Hotel AG. It trades about 0.04 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.02 per unit of risk. If you would invest 147.00 in Coor Service Management on October 30, 2024 and sell it today you would earn a total of 119.00 from holding Coor Service Management or generate 80.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Coor Service Management vs. MHP Hotel AG
Performance |
| Timeline |
| Coor Service Management |
| MHP Hotel AG |
Coor Service and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and MHP Hotel
The main advantage of trading using opposite Coor Service and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, MHP Hotel 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| Coor Service vs. MCEWEN MINING INC | Coor Service vs. The Yokohama Rubber | Coor Service vs. Perseus Mining Limited | Coor Service vs. Zijin Mining Group |
| MHP Hotel vs. JAPAN TOBACCO UNSPADR12 | MHP Hotel vs. National Health Investors | MHP Hotel vs. ALERION CLEANPOWER | MHP Hotel vs. OPKO HEALTH |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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