Correlation Between Thai Beverage and MHP Hotel
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By analyzing existing cross correlation between Thai Beverage Public and MHP Hotel AG, you can compare the effects of market volatilities on Thai Beverage and MHP Hotel 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 Thai Beverage with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and MHP Hotel.
Diversification Opportunities for Thai Beverage and MHP Hotel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and MHP is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel AG and Thai Beverage 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 Thai Beverage Public are associated (or correlated) with MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of Thai Beverage i.e., Thai Beverage and MHP Hotel go up and down completely randomly.
Pair Corralation between Thai Beverage and MHP Hotel
Assuming the 90 days horizon Thai Beverage is expected to generate 1.29 times less return on investment than MHP Hotel. But when comparing it to its historical volatility, Thai Beverage Public is 1.18 times less risky than MHP Hotel. It trades about 0.06 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 113.00 in MHP Hotel AG on September 21, 2024 and sell it today you would earn a total of 4.00 from holding MHP Hotel AG or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. MHP Hotel AG
Performance |
| Timeline |
| Thai Beverage Public |
| MHP Hotel AG |
Thai Beverage and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and MHP Hotel
The main advantage of trading using opposite Thai Beverage and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, MHP Hotel 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| Thai Beverage vs. SPARTAN STORES | Thai Beverage vs. MARKET VECTR RETAIL | Thai Beverage vs. JIAHUA STORES | Thai Beverage vs. QURATE RETAIL INC |
| MHP Hotel vs. COLUMBIA SPORTSWEAR | MHP Hotel vs. Thai Beverage Public | MHP Hotel vs. USWE SPORTS AB | MHP Hotel vs. Monster Beverage Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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