Correlation Between CONAGRA FOODS and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS 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 CONAGRA FOODS and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and Dalata Hotel Group, you can compare the effects of market volatilities on CONAGRA FOODS 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 CONAGRA FOODS with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and Dalata Hotel.
Diversification Opportunities for CONAGRA FOODS and Dalata Hotel
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CONAGRA and Dalata is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS i.e., CONAGRA FOODS and Dalata Hotel go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and Dalata Hotel
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the Dalata Hotel. But the stock apears to be less risky and, when comparing its historical volatility, CONAGRA FOODS is 1.18 times less risky than Dalata Hotel. The stock trades about -0.1 of its potential returns per unit of risk. The Dalata Hotel Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Dalata Hotel Group on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Dalata Hotel Group or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. Dalata Hotel Group
Performance |
| Timeline |
| CONAGRA FOODS |
| Dalata Hotel Group |
CONAGRA FOODS and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and Dalata Hotel
The main advantage of trading using opposite CONAGRA FOODS and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS 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.| CONAGRA FOODS vs. Harmony Gold Mining | CONAGRA FOODS vs. WILLIS LEASE FIN | CONAGRA FOODS vs. SHIN ETSU CHEMICAL | CONAGRA FOODS vs. WESTLAKE CHEMICAL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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