Correlation Between Mason Industrial and Meliá Hotels
Can any of the company-specific risk be diversified away by investing in both Mason Industrial and Meliá Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mason Industrial and Meliá Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mason Industrial Technology and Meli Hotels International, you can compare the effects of market volatilities on Mason Industrial and Meliá Hotels 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 Mason Industrial with a short position of Meliá Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mason Industrial and Meliá Hotels.
Diversification Opportunities for Mason Industrial and Meliá Hotels
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mason and Meliá is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mason Industrial Technology and Meli Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meli Hotels International and Mason Industrial 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 Mason Industrial Technology are associated (or correlated) with Meliá Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meli Hotels International has no effect on the direction of Mason Industrial i.e., Mason Industrial and Meliá Hotels go up and down completely randomly.
Pair Corralation between Mason Industrial and Meliá Hotels
If you would invest 711.00 in Meli Hotels International on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Meli Hotels International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Mason Industrial Technology vs. Meli Hotels International
Performance |
| Timeline |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Meli Hotels International |
Mason Industrial and Meliá Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mason Industrial and Meliá Hotels
The main advantage of trading using opposite Mason Industrial and Meliá Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mason Industrial position performs unexpectedly, Meliá Hotels 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 Meliá Hotels will offset losses from the drop in Meliá Hotels' long position.| Mason Industrial vs. JBG SMITH Properties | Mason Industrial vs. JD Sports Fashion | Mason Industrial vs. HNI Corp | Mason Industrial vs. Warner Music Group |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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