Correlation Between Mitie Group and MHP Hotel
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By analyzing existing cross correlation between Mitie Group PLC and MHP Hotel AG, you can compare the effects of market volatilities on Mitie Group 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 Mitie Group with a short position of MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and MHP Hotel.
Diversification Opportunities for Mitie Group and MHP Hotel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitie and MHP is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC 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 Mitie Group 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 Mitie Group PLC 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 Mitie Group i.e., Mitie Group and MHP Hotel go up and down completely randomly.
Pair Corralation between Mitie Group and MHP Hotel
Assuming the 90 days horizon Mitie Group PLC is expected to under-perform the MHP Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Mitie Group PLC is 1.6 times less risky than MHP Hotel. The stock trades about -0.07 of its potential returns per unit of risk. The MHP Hotel AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 148.00 in MHP Hotel AG on April 8, 2025 and sell it today you would earn a total of 0.00 from holding MHP Hotel AG or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mitie Group PLC vs. MHP Hotel AG
Performance |
Timeline |
Mitie Group PLC |
MHP Hotel AG |
Mitie Group and MHP Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mitie Group and MHP Hotel
The main advantage of trading using opposite Mitie Group and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group 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.Mitie Group vs. Synovus Financial Corp | Mitie Group vs. AOZORA BANK LTD | Mitie Group vs. United Utilities Group | Mitie Group vs. Algonquin Power Utilities |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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