Correlation Between MHP Hotel and Guidewire Software
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By analyzing existing cross correlation between MHP Hotel AG and Guidewire Software, you can compare the effects of market volatilities on MHP Hotel and Guidewire Software 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 MHP Hotel with a short position of Guidewire Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MHP Hotel and Guidewire Software.
Diversification Opportunities for MHP Hotel and Guidewire Software
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between MHP and Guidewire is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding MHP Hotel AG and Guidewire Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidewire Software and MHP Hotel 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 MHP Hotel AG are associated (or correlated) with Guidewire Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidewire Software has no effect on the direction of MHP Hotel i.e., MHP Hotel and Guidewire Software go up and down completely randomly.
Pair Corralation between MHP Hotel and Guidewire Software
Assuming the 90 days trading horizon MHP Hotel AG is expected to generate 0.63 times more return on investment than Guidewire Software. However, MHP Hotel AG is 1.6 times less risky than Guidewire Software. It trades about 0.04 of its potential returns per unit of risk. Guidewire Software is currently generating about -0.14 per unit of risk. If you would invest 116.00 in MHP Hotel AG on September 25, 2024 and sell it today you would earn a total of 2.00 from holding MHP Hotel AG or generate 1.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MHP Hotel AG vs. Guidewire Software
Performance |
Timeline |
MHP Hotel AG |
Guidewire Software |
MHP Hotel and Guidewire Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MHP Hotel and Guidewire Software
The main advantage of trading using opposite MHP Hotel and Guidewire Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MHP Hotel position performs unexpectedly, Guidewire Software 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 Guidewire Software will offset losses from the drop in Guidewire Software's long position.MHP Hotel vs. MAROC TELECOM | MHP Hotel vs. INTERSHOP Communications Aktiengesellschaft | MHP Hotel vs. WillScot Mobile Mini | MHP Hotel vs. Singapore Telecommunications Limited |
Guidewire Software vs. Broadcom | Guidewire Software vs. TRAINLINE PLC LS | Guidewire Software vs. MHP Hotel AG | Guidewire Software vs. Playa Hotels Resorts |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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