Correlation Between Yuexiu Transport and MHP Hotel
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By analyzing existing cross correlation between Yuexiu Transport Infrastructure and MHP Hotel AG, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and MHP Hotel.
Diversification Opportunities for Yuexiu Transport and MHP Hotel
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yuexiu and MHP is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and MHP Hotel go up and down completely randomly.
Pair Corralation between Yuexiu Transport and MHP Hotel
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.73 times more return on investment than MHP Hotel. However, Yuexiu Transport is 1.73 times more volatile than MHP Hotel AG. It trades about 0.07 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 14.00 in Yuexiu Transport Infrastructure on October 16, 2024 and sell it today you would earn a total of 31.00 from holding Yuexiu Transport Infrastructure or generate 221.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. MHP Hotel AG
Performance |
| Timeline |
| Yuexiu Transport Inf |
| MHP Hotel AG |
Yuexiu Transport and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and MHP Hotel
The main advantage of trading using opposite Yuexiu Transport and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. CarsalesCom | Yuexiu Transport vs. CODERE ONLINE LUX | Yuexiu Transport vs. United Natural Foods | Yuexiu Transport vs. CARSALESCOM |
| MHP Hotel vs. Yuexiu Transport Infrastructure | MHP Hotel vs. Perseus Mining Limited | MHP Hotel vs. Gold Road Resources | MHP Hotel vs. Harmony Gold Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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