Correlation Between Meliá Hotels and 06051GFX2
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By analyzing existing cross correlation between Meli Hotels International and BANK AMER P, you can compare the effects of market volatilities on Meliá Hotels and 06051GFX2 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 Meliá Hotels with a short position of 06051GFX2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and 06051GFX2.
Diversification Opportunities for Meliá Hotels and 06051GFX2
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meliá and 06051GFX2 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P and Meliá Hotels 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 Meli Hotels International are associated (or correlated) with 06051GFX2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and 06051GFX2 go up and down completely randomly.
Pair Corralation between Meliá Hotels and 06051GFX2
Assuming the 90 days horizon Meli Hotels International is expected to under-perform the 06051GFX2. In addition to that, Meliá Hotels is 6.61 times more volatile than BANK AMER P. It trades about -0.06 of its total potential returns per unit of risk. BANK AMER P is currently generating about 0.0 per unit of volatility. If you would invest 9,699 in BANK AMER P on September 2, 2024 and sell it today you would lose (8.00) from holding BANK AMER P or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Meli Hotels International vs. BANK AMER P
Performance |
| Timeline |
| Meli Hotels International |
| BANK AMER P |
Meliá Hotels and 06051GFX2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and 06051GFX2
The main advantage of trading using opposite Meliá Hotels and 06051GFX2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, 06051GFX2 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 06051GFX2 will offset losses from the drop in 06051GFX2's long position.| Meliá Hotels vs. SunLink Health Systems | Meliá Hotels vs. Dana Inc | Meliá Hotels vs. Gentex | Meliá Hotels vs. Simon Property Group |
| 06051GFX2 vs. Sweetgreen | 06051GFX2 vs. Meli Hotels International | 06051GFX2 vs. Dennys Corp | 06051GFX2 vs. Playtika Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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