Correlation Between Host Hotels and MHP Hotel
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By analyzing existing cross correlation between Host Hotels Resorts and MHP Hotel AG, you can compare the effects of market volatilities on Host Hotels 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 Host Hotels with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and MHP Hotel.
Diversification Opportunities for Host Hotels and MHP Hotel
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Host and MHP is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts 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 Host Hotels 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 Host Hotels Resorts 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 Host Hotels i.e., Host Hotels and MHP Hotel go up and down completely randomly.
Pair Corralation between Host Hotels and MHP Hotel
Assuming the 90 days horizon Host Hotels Resorts is expected to generate 0.65 times more return on investment than MHP Hotel. However, Host Hotels Resorts is 1.55 times less risky than MHP Hotel. It trades about 0.14 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 1,610 in Host Hotels Resorts on August 28, 2024 and sell it today you would earn a total of 110.00 from holding Host Hotels Resorts or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. MHP Hotel AG
Performance |
| Timeline |
| Host Hotels Resorts |
| MHP Hotel AG |
Host Hotels and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and MHP Hotel
The main advantage of trading using opposite Host Hotels and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels 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.| Host Hotels vs. VIAPLAY GROUP AB | Host Hotels vs. CVW CLEANTECH INC | Host Hotels vs. COLUMBIA SPORTSWEAR | Host Hotels vs. ANTA SPORTS PRODUCT |
| MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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