Correlation Between Meliá Hotels and DTRGR
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By analyzing existing cross correlation between Meli Hotels International and DTRGR 25 14 DEC 31, you can compare the effects of market volatilities on Meliá Hotels and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and DTRGR.
Diversification Opportunities for Meliá Hotels and DTRGR
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meliá and DTRGR is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and DTRGR 25 14 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 25 14 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 25 14 has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and DTRGR go up and down completely randomly.
Pair Corralation between Meliá Hotels and DTRGR
If you would invest 8,476 in DTRGR 25 14 DEC 31 on September 4, 2024 and sell it today you would earn a total of 26.00 from holding DTRGR 25 14 DEC 31 or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Meli Hotels International vs. DTRGR 25 14 DEC 31
Performance |
| Timeline |
| Meli Hotels International |
| DTRGR 25 14 |
Meliá Hotels and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and DTRGR
The main advantage of trading using opposite Meliá Hotels and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.| Meliá Hotels vs. Skillful Craftsman Education | Meliá Hotels vs. BJs Restaurants | Meliá Hotels vs. Cracker Barrel Old | Meliá Hotels vs. Sphere Entertainment Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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