Correlation Between Dalata Hotel and Auction Technology
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Auction Technology 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 Auction Technology 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 Auction Technology Group, you can compare the effects of market volatilities on Dalata Hotel and Auction Technology 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 Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Auction Technology.
Diversification Opportunities for Dalata Hotel and Auction Technology
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalata and Auction is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology 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 Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Auction Technology go up and down completely randomly.
Pair Corralation between Dalata Hotel and Auction Technology
Assuming the 90 days trading horizon Dalata Hotel is expected to generate 2.46 times less return on investment than Auction Technology. But when comparing it to its historical volatility, Dalata Hotel Group is 2.03 times less risky than Auction Technology. It trades about 0.22 of its potential returns per unit of risk. Auction Technology Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 54,900 in Auction Technology Group on November 6, 2024 and sell it today you would earn a total of 6,900 from holding Auction Technology Group or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dalata Hotel Group vs. Auction Technology Group
Performance |
| Timeline |
| Dalata Hotel Group |
| Auction Technology |
Dalata Hotel and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Auction Technology
The main advantage of trading using opposite Dalata Hotel and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Auction Technology 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| Dalata Hotel vs. SupplyMe Capital PLC | Dalata Hotel vs. SM Energy Co | Dalata Hotel vs. Grand Vision Media | Dalata Hotel vs. DG Innovate PLC |
| Auction Technology vs. Zoom Video Communications | Auction Technology vs. Empire Metals Limited | Auction Technology vs. Cairo Communication SpA | Auction Technology vs. GoldMining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |