Correlation Between Meli Hotels and 552953CD1
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By analyzing existing cross correlation between Meli Hotels International and MGM Resorts International, you can compare the effects of market volatilities on Meli Hotels and 552953CD1 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 Meli Hotels with a short position of 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meli Hotels and 552953CD1.
Diversification Opportunities for Meli Hotels and 552953CD1
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meli and 552953CD1 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International and Meli 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Meli Hotels i.e., Meli Hotels and 552953CD1 go up and down completely randomly.
Pair Corralation between Meli Hotels and 552953CD1
Assuming the 90 days horizon Meli Hotels is expected to generate 17.1 times less return on investment than 552953CD1. But when comparing it to its historical volatility, Meli Hotels International is 19.91 times less risky than 552953CD1. It trades about 0.05 of its potential returns per unit of risk. MGM Resorts International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,213 in MGM Resorts International on September 13, 2024 and sell it today you would earn a total of 412.00 from holding MGM Resorts International or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.14% |
| Values | Daily Returns |
Meli Hotels International vs. MGM Resorts International
Performance |
| Timeline |
| Meli Hotels International |
| MGM Resorts International |
Meli Hotels and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meli Hotels and 552953CD1
The main advantage of trading using opposite Meli Hotels and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meli Hotels position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| Meli Hotels vs. Marriott International | Meli Hotels vs. Hilton Worldwide Holdings | Meli Hotels vs. InterContinental Hotels Group | Meli Hotels vs. Accor SA |
| 552953CD1 vs. Kandi Technologies Group | 552953CD1 vs. Reservoir Media | 552953CD1 vs. Shake Shack | 552953CD1 vs. Meli Hotels 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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