Correlation Between THERMO FISHER and MHP Hotel
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By analyzing existing cross correlation between THERMO FISHER SCIEN and MHP Hotel AG, you can compare the effects of market volatilities on THERMO FISHER 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 THERMO FISHER with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of THERMO FISHER and MHP Hotel.
Diversification Opportunities for THERMO FISHER and MHP Hotel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between THERMO and MHP is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding THERMO FISHER SCIEN 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 THERMO FISHER 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 THERMO FISHER SCIEN 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 THERMO FISHER i.e., THERMO FISHER and MHP Hotel go up and down completely randomly.
Pair Corralation between THERMO FISHER and MHP Hotel
Assuming the 90 days trading horizon THERMO FISHER SCIEN is expected to generate 0.56 times more return on investment than MHP Hotel. However, THERMO FISHER SCIEN is 1.79 times less risky than MHP Hotel. It trades about 0.04 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.01 per unit of risk. If you would invest 45,687 in THERMO FISHER SCIEN on September 4, 2024 and sell it today you would earn a total of 4,733 from holding THERMO FISHER SCIEN or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THERMO FISHER SCIEN vs. MHP Hotel AG
Performance |
| Timeline |
| THERMO FISHER SCIEN |
| MHP Hotel AG |
THERMO FISHER and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THERMO FISHER and MHP Hotel
The main advantage of trading using opposite THERMO FISHER and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THERMO FISHER 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.| THERMO FISHER vs. Darden Restaurants | THERMO FISHER vs. Eagle Materials | THERMO FISHER vs. Summit Materials | THERMO FISHER vs. Lendlease Group |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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