Correlation Between SEALED AIR and MHP Hotel
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By analyzing existing cross correlation between SEALED AIR and MHP Hotel AG, you can compare the effects of market volatilities on SEALED AIR 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 SEALED AIR with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and MHP Hotel.
Diversification Opportunities for SEALED AIR and MHP Hotel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEALED and MHP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR 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 SEALED AIR 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 SEALED AIR 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 SEALED AIR i.e., SEALED AIR and MHP Hotel go up and down completely randomly.
Pair Corralation between SEALED AIR and MHP Hotel
Assuming the 90 days trading horizon SEALED AIR is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, SEALED AIR is 2.12 times less risky than MHP Hotel. The stock trades about -0.02 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 117.00 in MHP Hotel AG on October 28, 2024 and sell it today you would earn a total of 10.00 from holding MHP Hotel AG or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEALED AIR vs. MHP Hotel AG
Performance |
| Timeline |
| SEALED AIR |
| MHP Hotel AG |
SEALED AIR and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and MHP Hotel
The main advantage of trading using opposite SEALED AIR and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR 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.The idea behind SEALED AIR and MHP Hotel AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MHP Hotel vs. COPLAND ROAD CAPITAL | MHP Hotel vs. Broadcom | MHP Hotel vs. Zoom Video Communications | MHP Hotel vs. Citic Telecom International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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