Correlation Between Dalata Hotel and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Host Hotels 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 Dalata Hotel and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dalata Hotel Group and Host Hotels Resorts, you can compare the effects of market volatilities on Dalata Hotel and Host Hotels 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 Dalata Hotel with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Host Hotels.
Diversification Opportunities for Dalata Hotel and Host Hotels
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dalata and Host is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts and Dalata Hotel 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 Dalata Hotel Group are associated (or correlated) with Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Host Hotels go up and down completely randomly.
Pair Corralation between Dalata Hotel and Host Hotels
Assuming the 90 days trading horizon Dalata Hotel Group is expected to generate 1.01 times more return on investment than Host Hotels. However, Dalata Hotel is 1.01 times more volatile than Host Hotels Resorts. It trades about 0.18 of its potential returns per unit of risk. Host Hotels Resorts is currently generating about -0.17 per unit of risk. If you would invest 38,500 in Dalata Hotel Group on October 23, 2024 and sell it today you would earn a total of 1,500 from holding Dalata Hotel Group or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dalata Hotel Group vs. Host Hotels Resorts
Performance |
| Timeline |
| Dalata Hotel Group |
| Host Hotels Resorts |
Dalata Hotel and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Host Hotels
The main advantage of trading using opposite Dalata Hotel and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Host Hotels 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Dalata Hotel vs. Jacquet Metal Service | Dalata Hotel vs. Melia Hotels | Dalata Hotel vs. Bisichi Mining PLC | Dalata Hotel vs. Rheinmetall AG |
| Host Hotels vs. Cardinal Health | Host Hotels vs. European Metals Holdings | Host Hotels vs. Eco Animal Health | Host Hotels vs. Omega Healthcare Investors |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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