Correlation Between Regions Financial and MHP Hotel
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By analyzing existing cross correlation between Regions Financial and MHP Hotel AG, you can compare the effects of market volatilities on Regions Financial 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 Regions Financial with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and MHP Hotel.
Diversification Opportunities for Regions Financial and MHP Hotel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Regions and MHP is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial 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 Regions Financial 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 Regions Financial 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 Regions Financial i.e., Regions Financial and MHP Hotel go up and down completely randomly.
Pair Corralation between Regions Financial and MHP Hotel
Assuming the 90 days horizon Regions Financial is expected to generate 0.76 times more return on investment than MHP Hotel. However, Regions Financial is 1.31 times less risky than MHP Hotel. It trades about 0.13 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 1,525 in Regions Financial on August 31, 2024 and sell it today you would earn a total of 1,075 from holding Regions Financial or generate 70.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regions Financial vs. MHP Hotel AG
Performance |
| Timeline |
| Regions Financial |
| MHP Hotel AG |
Regions Financial and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and MHP Hotel
The main advantage of trading using opposite Regions Financial and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial 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.| Regions Financial vs. MOLSON RS BEVERAGE | Regions Financial vs. AOI Electronics Co | Regions Financial vs. Benchmark Electronics | Regions Financial vs. UMC Electronics Co |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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