Correlation Between Dalata Hotel and Impax Asset
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Impax Asset 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 Impax Asset 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 Impax Asset Management, you can compare the effects of market volatilities on Dalata Hotel and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Impax Asset.
Diversification Opportunities for Dalata Hotel and Impax Asset
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dalata and Impax is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Impax Asset go up and down completely randomly.
Pair Corralation between Dalata Hotel and Impax Asset
Assuming the 90 days trading horizon Dalata Hotel Group is expected to generate 0.48 times more return on investment than Impax Asset. However, Dalata Hotel Group is 2.07 times less risky than Impax Asset. It trades about 0.18 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.26 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 Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dalata Hotel Group vs. Impax Asset Management
Performance |
| Timeline |
| Dalata Hotel Group |
| Impax Asset Management |
Dalata Hotel and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Impax Asset
The main advantage of trading using opposite Dalata Hotel and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| Dalata Hotel vs. Jacquet Metal Service | Dalata Hotel vs. Melia Hotels | Dalata Hotel vs. Bisichi Mining PLC | Dalata Hotel vs. Rheinmetall AG |
| Impax Asset vs. Catalyst Media Group | Impax Asset vs. CATLIN GROUP | Impax Asset vs. Tamburi Investment Partners | Impax Asset vs. Magnora ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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