Correlation Between SHIP HEALTHCARE and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and Dalata Hotel Group, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and Dalata Hotel.
Diversification Opportunities for SHIP HEALTHCARE and Dalata Hotel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SHIP and Dalata is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and Dalata Hotel go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and Dalata Hotel
Assuming the 90 days horizon SHIP HEALTHCARE HLDGINC is expected to under-perform the Dalata Hotel. But the stock apears to be less risky and, when comparing its historical volatility, SHIP HEALTHCARE HLDGINC is 1.58 times less risky than Dalata Hotel. The stock trades about -0.18 of its potential returns per unit of risk. The Dalata Hotel Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 455.00 in Dalata Hotel Group on October 15, 2024 and sell it today you would earn a total of 9.00 from holding Dalata Hotel Group or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. Dalata Hotel Group
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| Dalata Hotel Group |
SHIP HEALTHCARE and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and Dalata Hotel
The main advantage of trading using opposite SHIP HEALTHCARE and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. UPDATE SOFTWARE | SHIP HEALTHCARE vs. China Communications Services | SHIP HEALTHCARE vs. Take Two Interactive Software | SHIP HEALTHCARE vs. Highlight Communications AG |
| Dalata Hotel vs. UNIQA INSURANCE GR | Dalata Hotel vs. REVO INSURANCE SPA | Dalata Hotel vs. Hua Hong Semiconductor | Dalata Hotel vs. Nordic Semiconductor ASA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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