Correlation Between Bt Brands and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Bt Brands 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 Bt Brands and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bt Brands and Dalata Hotel Group, you can compare the effects of market volatilities on Bt Brands 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 Bt Brands with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bt Brands and Dalata Hotel.
Diversification Opportunities for Bt Brands and Dalata Hotel
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between BTBD and Dalata is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bt Brands 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 Bt Brands 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 Bt Brands 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 Bt Brands i.e., Bt Brands and Dalata Hotel go up and down completely randomly.
Pair Corralation between Bt Brands and Dalata Hotel
Given the investment horizon of 90 days Bt Brands is expected to under-perform the Dalata Hotel. In addition to that, Bt Brands is 2.36 times more volatile than Dalata Hotel Group. It trades about 0.0 of its total potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.05 per unit of volatility. If you would invest 336.00 in Dalata Hotel Group on August 31, 2024 and sell it today you would earn a total of 152.00 from holding Dalata Hotel Group or generate 45.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bt Brands vs. Dalata Hotel Group
Performance |
| Timeline |
| Bt Brands |
| Dalata Hotel Group |
Bt Brands and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bt Brands and Dalata Hotel
The main advantage of trading using opposite Bt Brands and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bt Brands 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.| Bt Brands vs. RLJ Lodging Trust | Bt Brands vs. Aquagold International | Bt Brands vs. Stepstone Group | Bt Brands vs. Morningstar Unconstrained Allocation |
| Dalata Hotel vs. NH Foods Ltd | Dalata Hotel vs. Getty Realty | Dalata Hotel vs. Beyond Meat | Dalata Hotel vs. Marfrig Global Foods |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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