Correlation Between Enel SpA and MHP Hotel
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By analyzing existing cross correlation between Enel SpA and MHP Hotel AG, you can compare the effects of market volatilities on Enel SpA 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 Enel SpA with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel SpA and MHP Hotel.
Diversification Opportunities for Enel SpA and MHP Hotel
Good diversification
The 3 months correlation between Enel and MHP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enel SpA 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 Enel SpA 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 Enel SpA 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 Enel SpA i.e., Enel SpA and MHP Hotel go up and down completely randomly.
Pair Corralation between Enel SpA and MHP Hotel
Assuming the 90 days trading horizon Enel SpA is expected to generate 0.65 times more return on investment than MHP Hotel. However, Enel SpA is 1.54 times less risky than MHP Hotel. It trades about 0.05 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.0 per unit of risk. If you would invest 578.00 in Enel SpA on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Enel SpA or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel SpA vs. MHP Hotel AG
Performance |
| Timeline |
| Enel SpA |
| MHP Hotel AG |
Enel SpA and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel SpA and MHP Hotel
The main advantage of trading using opposite Enel SpA and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel SpA 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.| Enel SpA vs. Texas Roadhouse | Enel SpA vs. BII Railway Transportation | Enel SpA vs. CarsalesCom | Enel SpA vs. Salesforce |
| MHP Hotel vs. CANASIL RESOURCES | MHP Hotel vs. Gossan Resources | MHP Hotel vs. DevEx Resources Limited | MHP Hotel vs. KTL GLOBAL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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