Correlation Between PPHE HOTEL and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both PPHE HOTEL 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 PPHE HOTEL and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPHE HOTEL GROUP and Dalata Hotel Group, you can compare the effects of market volatilities on PPHE HOTEL 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 PPHE HOTEL with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE HOTEL and Dalata Hotel.
Diversification Opportunities for PPHE HOTEL and Dalata Hotel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PPHE and Dalata is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PPHE HOTEL GROUP 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 PPHE 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 PPHE HOTEL GROUP 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 PPHE HOTEL i.e., PPHE HOTEL and Dalata Hotel go up and down completely randomly.
Pair Corralation between PPHE HOTEL and Dalata Hotel
Assuming the 90 days trading horizon PPHE HOTEL GROUP is expected to under-perform the Dalata Hotel. In addition to that, PPHE HOTEL is 1.5 times more volatile than Dalata Hotel Group. It trades about -0.22 of its total potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.15 per unit of volatility. If you would invest 461.00 in Dalata Hotel Group on October 29, 2024 and sell it today you would earn a total of 20.00 from holding Dalata Hotel Group or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPHE HOTEL GROUP vs. Dalata Hotel Group
Performance |
| Timeline |
| PPHE HOTEL GROUP |
| Dalata Hotel Group |
PPHE HOTEL and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE HOTEL and Dalata Hotel
The main advantage of trading using opposite PPHE HOTEL and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE HOTEL 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.| PPHE HOTEL vs. Boyd Gaming | PPHE HOTEL vs. CompuGroup Medical SE | PPHE HOTEL vs. Corsair Gaming | PPHE HOTEL vs. PLAYMATES TOYS |
| Dalata Hotel vs. American Eagle Outfitters | Dalata Hotel vs. CVW CLEANTECH INC | Dalata Hotel vs. Virtu Financial | Dalata Hotel vs. Chiba Bank |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |