Correlation Between Dairy Farm and MHP Hotel
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By analyzing existing cross correlation between Dairy Farm International and MHP Hotel AG, you can compare the effects of market volatilities on Dairy Farm 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 Dairy Farm with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dairy Farm and MHP Hotel.
Diversification Opportunities for Dairy Farm and MHP Hotel
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dairy and MHP is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dairy Farm International 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 Dairy Farm 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 Dairy Farm International 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 Dairy Farm i.e., Dairy Farm and MHP Hotel go up and down completely randomly.
Pair Corralation between Dairy Farm and MHP Hotel
Assuming the 90 days trading horizon Dairy Farm International is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Dairy Farm International is 1.0 times less risky than MHP Hotel. The stock trades about -0.01 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 127.00 in MHP Hotel AG on October 31, 2024 and sell it today you would earn a total of 1.00 from holding MHP Hotel AG or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dairy Farm International vs. MHP Hotel AG
Performance |
| Timeline |
| Dairy Farm International |
| MHP Hotel AG |
Dairy Farm and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dairy Farm and MHP Hotel
The main advantage of trading using opposite Dairy Farm and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dairy Farm 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.| Dairy Farm vs. JSC Halyk bank | Dairy Farm vs. Zoom Video Communications | Dairy Farm vs. Warner Music Group | Dairy Farm vs. Commonwealth Bank of |
| MHP Hotel vs. IMAGIN MEDICAL INC | MHP Hotel vs. Alfa Financial Software | MHP Hotel vs. Casio Computer CoLtd | MHP Hotel vs. British American Tobacco |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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