Correlation Between Meliá Hotels and QUALCOMM
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By analyzing existing cross correlation between Meli Hotels International and QUALCOMM INC 325, you can compare the effects of market volatilities on Meliá Hotels and QUALCOMM 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 QUALCOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meliá Hotels and QUALCOMM.
Diversification Opportunities for Meliá Hotels and QUALCOMM
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meliá and QUALCOMM is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and QUALCOMM INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALCOMM INC 325 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 QUALCOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALCOMM INC 325 has no effect on the direction of Meliá Hotels i.e., Meliá Hotels and QUALCOMM go up and down completely randomly.
Pair Corralation between Meliá Hotels and QUALCOMM
Assuming the 90 days horizon Meli Hotels International is expected to generate 5.14 times more return on investment than QUALCOMM. However, Meliá Hotels is 5.14 times more volatile than QUALCOMM INC 325. It trades about 0.0 of its potential returns per unit of risk. QUALCOMM INC 325 is currently generating about 0.01 per unit of risk. If you would invest 730.00 in Meli Hotels International on September 3, 2024 and sell it today you would lose (19.00) from holding Meli Hotels International or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.55% |
| Values | Daily Returns |
Meli Hotels International vs. QUALCOMM INC 325
Performance |
| Timeline |
| Meli Hotels International |
| QUALCOMM INC 325 |
Meliá Hotels and QUALCOMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meliá Hotels and QUALCOMM
The main advantage of trading using opposite Meliá Hotels and QUALCOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meliá Hotels position performs unexpectedly, QUALCOMM 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 QUALCOMM will offset losses from the drop in QUALCOMM's long position.| Meliá Hotels vs. Nike Inc | Meliá Hotels vs. Duluth Holdings | Meliá Hotels vs. Kontoor Brands | Meliá Hotels vs. Summit Materials |
| QUALCOMM vs. AEP TEX INC | QUALCOMM vs. US BANK NATIONAL | QUALCOMM vs. Jackson Financial | QUALCOMM vs. Brera Holdings PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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