Correlation Between Arena Hospitality and Dalekovod
Can any of the company-specific risk be diversified away by investing in both Arena Hospitality and Dalekovod 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 Arena Hospitality and Dalekovod into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arena Hospitality Group and Dalekovod dd, you can compare the effects of market volatilities on Arena Hospitality and Dalekovod 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 Arena Hospitality with a short position of Dalekovod. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arena Hospitality and Dalekovod.
Diversification Opportunities for Arena Hospitality and Dalekovod
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arena and Dalekovod is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Arena Hospitality Group and Dalekovod dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalekovod dd and Arena Hospitality 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 Arena Hospitality Group are associated (or correlated) with Dalekovod. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalekovod dd has no effect on the direction of Arena Hospitality i.e., Arena Hospitality and Dalekovod go up and down completely randomly.
Pair Corralation between Arena Hospitality and Dalekovod
Assuming the 90 days trading horizon Arena Hospitality Group is expected to under-perform the Dalekovod. But the stock apears to be less risky and, when comparing its historical volatility, Arena Hospitality Group is 2.87 times less risky than Dalekovod. The stock trades about -0.2 of its potential returns per unit of risk. The Dalekovod dd is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Dalekovod dd on October 20, 2024 and sell it today you would earn a total of 90.00 from holding Dalekovod dd or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.59% |
| Values | Daily Returns |
Arena Hospitality Group vs. Dalekovod dd
Performance |
| Timeline |
| Arena Hospitality |
| Dalekovod dd |
Arena Hospitality and Dalekovod Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arena Hospitality and Dalekovod
The main advantage of trading using opposite Arena Hospitality and Dalekovod positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arena Hospitality position performs unexpectedly, Dalekovod 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 Dalekovod will offset losses from the drop in Dalekovod's long position.| Arena Hospitality vs. AD Plastik dd | Arena Hospitality vs. Hrvatska Postanska Banka | Arena Hospitality vs. Dalekovod dd | Arena Hospitality vs. Podravka Prehrambena Industrija |
| Dalekovod vs. Institut IGH dd | Dalekovod vs. Jadroplov dd | Dalekovod vs. Zagrebacka Banka dd | Dalekovod vs. Podravka Prehrambena Industrija |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |