Correlation Between NH Hotel and MYT Netherlands
Can any of the company-specific risk be diversified away by investing in both NH Hotel and MYT Netherlands 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 NH Hotel and MYT Netherlands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Hotel Group and MYT Netherlands Parent, you can compare the effects of market volatilities on NH Hotel and MYT Netherlands 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 NH Hotel with a short position of MYT Netherlands. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Hotel and MYT Netherlands.
Diversification Opportunities for NH Hotel and MYT Netherlands
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NHHEF and MYT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding NH Hotel Group and MYT Netherlands Parent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYT Netherlands Parent and NH Hotel 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 NH Hotel Group are associated (or correlated) with MYT Netherlands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYT Netherlands Parent has no effect on the direction of NH Hotel i.e., NH Hotel and MYT Netherlands go up and down completely randomly.
Pair Corralation between NH Hotel and MYT Netherlands
Assuming the 90 days horizon NH Hotel Group is expected to generate 0.39 times more return on investment than MYT Netherlands. However, NH Hotel Group is 2.53 times less risky than MYT Netherlands. It trades about 0.04 of its potential returns per unit of risk. MYT Netherlands Parent is currently generating about 0.01 per unit of risk. If you would invest 388.00 in NH Hotel Group on October 11, 2024 and sell it today you would earn a total of 152.00 from holding NH Hotel Group or generate 39.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Hotel Group vs. MYT Netherlands Parent
Performance |
| Timeline |
| NH Hotel Group |
| MYT Netherlands Parent |
NH Hotel and MYT Netherlands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Hotel and MYT Netherlands
The main advantage of trading using opposite NH Hotel and MYT Netherlands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Hotel position performs unexpectedly, MYT Netherlands 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 MYT Netherlands will offset losses from the drop in MYT Netherlands' long position.| NH Hotel vs. MYT Netherlands Parent | NH Hotel vs. LB Foster | NH Hotel vs. BBB Foods | NH Hotel vs. The Gap, |
| MYT Netherlands vs. Movado Group | MYT Netherlands vs. Envela Corp | MYT Netherlands vs. Tapestry | MYT Netherlands vs. Capri Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |