Correlation Between Meliá Hotels and 69371RR65
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By analyzing existing cross correlation between Meli Hotels International and PCAR 2 04 FEB 27, you can compare the effects of market volatilities on Meliá Hotels and 69371RR65 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 69371RR65. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and 69371RR65.
Diversification Opportunities for Meliá Hotels and 69371RR65
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meliá and 69371RR65 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and PCAR 2 04 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCAR 2 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 69371RR65. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCAR 2 04 has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and 69371RR65 go up and down completely randomly.
Pair Corralation between Meliá Hotels and 69371RR65
Assuming the 90 days horizon Meli Hotels International is expected to generate 2.01 times more return on investment than 69371RR65. However, Meliá Hotels is 2.01 times more volatile than PCAR 2 04 FEB 27. It trades about 0.04 of its potential returns per unit of risk. PCAR 2 04 FEB 27 is currently generating about 0.0 per unit of risk. If you would invest 617.00 in Meli Hotels International on September 4, 2024 and sell it today you would earn a total of 94.00 from holding Meli Hotels International or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 43.88% |
| Values | Daily Returns |
Meli Hotels International vs. PCAR 2 04 FEB 27
Performance |
| Timeline |
| Meli Hotels International |
| PCAR 2 04 |
Meliá Hotels and 69371RR65 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and 69371RR65
The main advantage of trading using opposite Meliá Hotels and 69371RR65 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, 69371RR65 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 69371RR65 will offset losses from the drop in 69371RR65'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 |
| 69371RR65 vs. Black Hills | 69371RR65 vs. Sun Life Financial | 69371RR65 vs. Meli Hotels International | 69371RR65 vs. Life Time Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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