Correlation Between Micron Technology and MHP Hotel
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By analyzing existing cross correlation between Micron Technology and MHP Hotel AG, you can compare the effects of market volatilities on Micron Technology 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 Micron Technology with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and MHP Hotel.
Diversification Opportunities for Micron Technology and MHP Hotel
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Micron and MHP is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology 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 Micron Technology 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 Micron Technology 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 Micron Technology i.e., Micron Technology and MHP Hotel go up and down completely randomly.
Pair Corralation between Micron Technology and MHP Hotel
Assuming the 90 days trading horizon Micron Technology is expected to under-perform the MHP Hotel. In addition to that, Micron Technology is 1.46 times more volatile than MHP Hotel AG. It trades about -0.09 of its total potential returns per unit of risk. MHP Hotel AG is currently generating about 0.09 per unit of volatility. If you would invest 127.00 in MHP Hotel AG on November 5, 2024 and sell it today you would earn a total of 6.00 from holding MHP Hotel AG or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology vs. MHP Hotel AG
Performance |
| Timeline |
| Micron Technology |
| MHP Hotel AG |
Micron Technology and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and MHP Hotel
The main advantage of trading using opposite Micron Technology and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology 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.| Micron Technology vs. Perseus Mining Limited | Micron Technology vs. FIREWEED METALS P | Micron Technology vs. RCI Hospitality Holdings | Micron Technology vs. GALENA MINING LTD |
| MHP Hotel vs. Inspire Medical Systems | MHP Hotel vs. STORE ELECTRONIC | MHP Hotel vs. Japan Medical Dynamic | MHP Hotel vs. Delta Electronics Public |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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