Correlation Between DATATEC and MHP Hotel
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By analyzing existing cross correlation between DATATEC LTD 2 and MHP Hotel AG, you can compare the effects of market volatilities on DATATEC 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 DATATEC with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATATEC and MHP Hotel.
Diversification Opportunities for DATATEC and MHP Hotel
Very weak diversification
The 3 months correlation between DATATEC and MHP is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DATATEC LTD 2 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 DATATEC 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 DATATEC LTD 2 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 DATATEC i.e., DATATEC and MHP Hotel go up and down completely randomly.
Pair Corralation between DATATEC and MHP Hotel
Assuming the 90 days trading horizon DATATEC LTD 2 is expected to generate 0.65 times more return on investment than MHP Hotel. However, DATATEC LTD 2 is 1.53 times less risky than MHP Hotel. It trades about 0.2 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.04 per unit of risk. If you would invest 484.00 in DATATEC LTD 2 on April 25, 2025 and sell it today you would earn a total of 106.00 from holding DATATEC LTD 2 or generate 21.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DATATEC LTD 2 vs. MHP Hotel AG
Performance |
Timeline |
DATATEC LTD 2 |
MHP Hotel AG |
DATATEC and MHP Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DATATEC and MHP Hotel
The main advantage of trading using opposite DATATEC and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATATEC 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.DATATEC vs. Accenture plc | DATATEC vs. International Business Machines | DATATEC vs. Capgemini SE | DATATEC vs. Cognizant Technology Solutions |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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