Correlation Between Meliá Hotels and COMCAST
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By analyzing existing cross correlation between Meli Hotels International and COMCAST P NEW, you can compare the effects of market volatilities on Meliá Hotels and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and COMCAST.
Diversification Opportunities for Meliá Hotels and COMCAST
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meliá and COMCAST is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and COMCAST go up and down completely randomly.
Pair Corralation between Meliá Hotels and COMCAST
Assuming the 90 days horizon Meli Hotels International is expected to under-perform the COMCAST. But the pink sheet apears to be less risky and, when comparing its historical volatility, Meli Hotels International is 111.39 times less risky than COMCAST. The pink sheet trades about -0.16 of its potential returns per unit of risk. The COMCAST P NEW is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8,863 in COMCAST P NEW on September 5, 2024 and sell it today you would earn a total of 635.00 from holding COMCAST P NEW or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.66% |
| Values | Daily Returns |
Meli Hotels International vs. COMCAST P NEW
Performance |
| Timeline |
| Meli Hotels International |
| COMCAST P NEW |
Meliá Hotels and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and COMCAST
The main advantage of trading using opposite Meliá Hotels and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Meliá Hotels vs. Merit Medical Systems | Meliá Hotels vs. SunLink Health Systems | Meliá Hotels vs. NETGEAR | Meliá Hotels vs. ServiceNow |
| COMCAST vs. The Travelers Companies | COMCAST vs. GE Aerospace | COMCAST vs. Walmart | COMCAST vs. Pfizer Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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