Correlation Between Oasis Hotel and Meliá Hotels
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel 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 Oasis Hotel and Meliá Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Meli Hotels International, you can compare the effects of market volatilities on Oasis Hotel 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 Oasis Hotel with a short position of Meliá Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Meliá Hotels.
Diversification Opportunities for Oasis Hotel and Meliá Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Meliá is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort 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 Oasis 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and Meliá Hotels go up and down completely randomly.
Pair Corralation between Oasis Hotel and Meliá Hotels
If you would invest 569.00 in Meli Hotels International on August 29, 2024 and sell it today you would earn a total of 142.00 from holding Meli Hotels International or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.97% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Meli Hotels International
Performance |
| Timeline |
| Oasis Hotel Resort |
| Meli Hotels International |
Oasis Hotel and Meliá Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Meliá Hotels
The main advantage of trading using opposite Oasis Hotel and Meliá Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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.| Oasis Hotel vs. Apple Inc | Oasis Hotel vs. Microsoft | Oasis Hotel vs. Alphabet Inc Class C | Oasis Hotel vs. Meta Platforms |
| Meliá Hotels vs. Marriott International | Meliá Hotels vs. Hilton Worldwide Holdings | Meliá Hotels vs. InterContinental Hotels Group | Meliá Hotels vs. InterContinental Hotels Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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