Correlation Between Auction Technology and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Auction Technology 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 Auction Technology and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Dalata Hotel Group, you can compare the effects of market volatilities on Auction Technology 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 Auction Technology with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Dalata Hotel.
Diversification Opportunities for Auction Technology and Dalata Hotel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Auction and Dalata is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology 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 Auction Technology 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 Auction Technology 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 Auction Technology i.e., Auction Technology and Dalata Hotel go up and down completely randomly.
Pair Corralation between Auction Technology and Dalata Hotel
Assuming the 90 days trading horizon Auction Technology Group is expected to generate 2.1 times more return on investment than Dalata Hotel. However, Auction Technology is 2.1 times more volatile than Dalata Hotel Group. It trades about 0.13 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.17 per unit of risk. If you would invest 46,900 in Auction Technology Group on September 2, 2024 and sell it today you would earn a total of 4,700 from holding Auction Technology Group or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auction Technology Group vs. Dalata Hotel Group
Performance |
| Timeline |
| Auction Technology |
| Dalata Hotel Group |
Auction Technology and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Dalata Hotel
The main advantage of trading using opposite Auction Technology and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology 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.| Auction Technology vs. SupplyMe Capital PLC | Auction Technology vs. Lloyds Banking Group | Auction Technology vs. Premier African Minerals | Auction Technology vs. SANTANDER UK 8 |
| Dalata Hotel vs. Odfjell Drilling | Dalata Hotel vs. Sabien Technology Group | Dalata Hotel vs. Eastman Chemical Co | Dalata Hotel vs. Vitec Software Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |