Correlation Between TRAINLINE PLC and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both TRAINLINE PLC and Dalata Hotel 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 TRAINLINE PLC and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRAINLINE PLC LS and Dalata Hotel Group, you can compare the effects of market volatilities on TRAINLINE PLC and Dalata 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 TRAINLINE PLC with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAINLINE PLC and Dalata Hotel.
Diversification Opportunities for TRAINLINE PLC and Dalata Hotel
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TRAINLINE and Dalata is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding TRAINLINE PLC LS and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group and TRAINLINE PLC 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 TRAINLINE PLC LS are associated (or correlated) with Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of TRAINLINE PLC i.e., TRAINLINE PLC and Dalata Hotel go up and down completely randomly.
Pair Corralation between TRAINLINE PLC and Dalata Hotel
Assuming the 90 days trading horizon TRAINLINE PLC LS is expected to generate 1.38 times more return on investment than Dalata Hotel. However, TRAINLINE PLC is 1.38 times more volatile than Dalata Hotel Group. It trades about 0.04 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.04 per unit of risk. If you would invest 342.00 in TRAINLINE PLC LS on August 31, 2024 and sell it today you would earn a total of 138.00 from holding TRAINLINE PLC LS or generate 40.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRAINLINE PLC LS vs. Dalata Hotel Group
Performance |
| Timeline |
| TRAINLINE PLC LS |
| Dalata Hotel Group |
TRAINLINE PLC and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAINLINE PLC and Dalata Hotel
The main advantage of trading using opposite TRAINLINE PLC and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAINLINE PLC position performs unexpectedly, Dalata 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| TRAINLINE PLC vs. TRAVEL LEISURE DL 01 | TRAINLINE PLC vs. TUI AG | TRAINLINE PLC vs. Lindblad Expeditions Holdings | TRAINLINE PLC vs. ON THE BEACH |
| Dalata Hotel vs. Hilton Worldwide Holdings | Dalata Hotel vs. InterContinental Hotels Group | Dalata Hotel vs. ACCOR SPADR NEW | Dalata Hotel vs. Wyndham 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |