Correlation Between Sixt Leasing and MHP Hotel
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By analyzing existing cross correlation between Sixt Leasing SE and MHP Hotel AG, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and MHP Hotel.
Diversification Opportunities for Sixt Leasing and MHP Hotel
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixt and MHP is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE 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 Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and MHP Hotel go up and down completely randomly.
Pair Corralation between Sixt Leasing and MHP Hotel
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.97 times less risky than MHP Hotel. The stock trades about -0.17 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 116.00 in MHP Hotel AG on August 28, 2024 and sell it today you would earn a total of 0.00 from holding MHP Hotel AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. MHP Hotel AG
Performance |
| Timeline |
| Sixt Leasing SE |
| MHP Hotel AG |
Sixt Leasing and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and MHP Hotel
The main advantage of trading using opposite Sixt Leasing and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| 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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