Correlation Between Melia Hotels and Rosslyn Data
Can any of the company-specific risk be diversified away by investing in both Melia Hotels and Rosslyn Data at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Melia Hotels and Rosslyn Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melia Hotels and Rosslyn Data Technologies, you can compare the effects of market volatilities on Melia Hotels and Rosslyn Data 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 Melia Hotels with a short position of Rosslyn Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melia Hotels and Rosslyn Data.
Diversification Opportunities for Melia Hotels and Rosslyn Data
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Melia and Rosslyn is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Melia Hotels and Rosslyn Data Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rosslyn Data Technologies and Melia Hotels 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 Melia Hotels are associated (or correlated) with Rosslyn Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rosslyn Data Technologies has no effect on the direction of Melia Hotels i.e., Melia Hotels and Rosslyn Data go up and down completely randomly.
Pair Corralation between Melia Hotels and Rosslyn Data
Assuming the 90 days trading horizon Melia Hotels is expected to generate 0.9 times more return on investment than Rosslyn Data. However, Melia Hotels is 1.11 times less risky than Rosslyn Data. It trades about -0.19 of its potential returns per unit of risk. Rosslyn Data Technologies is currently generating about -0.19 per unit of risk. If you would invest 815.00 in Melia Hotels on August 18, 2025 and sell it today you would lose (104.00) from holding Melia Hotels or give up 12.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melia Hotels vs. Rosslyn Data Technologies
Performance |
| Timeline |
| Melia Hotels |
| Rosslyn Data Technologies |
Melia Hotels and Rosslyn Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melia Hotels and Rosslyn Data
The main advantage of trading using opposite Melia Hotels and Rosslyn Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melia Hotels position performs unexpectedly, Rosslyn Data 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 Rosslyn Data will offset losses from the drop in Rosslyn Data's long position.| Melia Hotels vs. Berkshire Hathaway | Melia Hotels vs. Samsung Electronics Co | Melia Hotels vs. Samsung Electronics Co | Melia Hotels vs. Samsung Electronics Co |
| Rosslyn Data vs. Samsung Electronics Co | Rosslyn Data vs. Samsung Electronics Co | Rosslyn Data vs. Samsung Electronics Co | Rosslyn Data vs. Toyota Motor 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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