Correlation Between NEWELL RUBBERMAID and MHP Hotel
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By analyzing existing cross correlation between NEWELL RUBBERMAID and MHP Hotel AG, you can compare the effects of market volatilities on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and MHP Hotel.
Diversification Opportunities for NEWELL RUBBERMAID and MHP Hotel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NEWELL and MHP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and MHP Hotel go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and MHP Hotel
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 1.64 times more return on investment than MHP Hotel. However, NEWELL RUBBERMAID is 1.64 times more volatile than MHP Hotel AG. It trades about 0.03 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.0 per unit of risk. If you would invest 756.00 in NEWELL RUBBERMAID on August 31, 2024 and sell it today you would earn a total of 137.00 from holding NEWELL RUBBERMAID or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. MHP Hotel AG
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| MHP Hotel AG |
NEWELL RUBBERMAID and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and MHP Hotel
The main advantage of trading using opposite NEWELL RUBBERMAID and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID 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.| NEWELL RUBBERMAID vs. SIVERS SEMICONDUCTORS AB | NEWELL RUBBERMAID vs. Darden Restaurants | NEWELL RUBBERMAID vs. Reliance Steel Aluminum | NEWELL RUBBERMAID vs. Q2M Managementberatung AG |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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