Correlation Between National Bank and MHP Hotel
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By analyzing existing cross correlation between National Bank Holdings and MHP Hotel AG, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and MHP Hotel.
Diversification Opportunities for National Bank and MHP Hotel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and MHP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings 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 National Bank 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 National Bank Holdings 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 National Bank i.e., National Bank and MHP Hotel go up and down completely randomly.
Pair Corralation between National Bank and MHP Hotel
Assuming the 90 days horizon National Bank Holdings is expected to generate 0.92 times more return on investment than MHP Hotel. However, National Bank Holdings is 1.09 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 0.04 per unit of risk. If you would invest 4,120 in National Bank Holdings on August 31, 2024 and sell it today you would earn a total of 380.00 from holding National Bank Holdings or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank Holdings vs. MHP Hotel AG
Performance |
| Timeline |
| National Bank Holdings |
| MHP Hotel AG |
National Bank and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and MHP Hotel
The main advantage of trading using opposite National Bank and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Fifth Third Bancorp | National Bank vs. Regions Financial | National Bank vs. Superior Plus Corp | National Bank vs. Origin Agritech |
| MHP Hotel vs. LODESTAR MIN | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Impinj Inc | MHP Hotel vs. Superior Plus Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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