Correlation Between Meliá Hotels and 500688AC0
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By analyzing existing cross correlation between Meli Hotels International and KOS 7125 04 APR 26, you can compare the effects of market volatilities on Meliá Hotels and 500688AC0 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 500688AC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and 500688AC0.
Diversification Opportunities for Meliá Hotels and 500688AC0
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meliá and 500688AC0 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and KOS 7125 04 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOS 7125 04 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 500688AC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOS 7125 04 has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and 500688AC0 go up and down completely randomly.
Pair Corralation between Meliá Hotels and 500688AC0
Assuming the 90 days horizon Meli Hotels International is expected to generate 0.83 times more return on investment than 500688AC0. However, Meli Hotels International is 1.2 times less risky than 500688AC0. It trades about 0.04 of its potential returns per unit of risk. KOS 7125 04 APR 26 is currently generating about 0.03 per unit of risk. If you would invest 531.00 in Meli Hotels International on September 4, 2024 and sell it today you would earn a total of 180.00 from holding Meli Hotels International or generate 33.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 20.04% |
| Values | Daily Returns |
Meli Hotels International vs. KOS 7125 04 APR 26
Performance |
| Timeline |
| Meli Hotels International |
| KOS 7125 04 |
Meliá Hotels and 500688AC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and 500688AC0
The main advantage of trading using opposite Meliá Hotels and 500688AC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, 500688AC0 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 500688AC0 will offset losses from the drop in 500688AC0'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 |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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