Correlation Between Dalata Hotel and Plaza Centers
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Plaza Centers 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 Plaza Centers 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 Plaza Centers NV, you can compare the effects of market volatilities on Dalata Hotel and Plaza Centers 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 Plaza Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Plaza Centers.
Diversification Opportunities for Dalata Hotel and Plaza Centers
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dalata and Plaza is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Plaza Centers NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Centers NV 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 Plaza Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Centers NV has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Plaza Centers go up and down completely randomly.
Pair Corralation between Dalata Hotel and Plaza Centers
Assuming the 90 days trading horizon Dalata Hotel Group is expected to generate 0.54 times more return on investment than Plaza Centers. However, Dalata Hotel Group is 1.84 times less risky than Plaza Centers. It trades about 0.24 of its potential returns per unit of risk. Plaza Centers NV is currently generating about -0.21 per unit of risk. If you would invest 34,000 in Dalata Hotel Group on August 29, 2024 and sell it today you would earn a total of 3,500 from holding Dalata Hotel Group or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalata Hotel Group vs. Plaza Centers NV
Performance |
| Timeline |
| Dalata Hotel Group |
| Plaza Centers NV |
Dalata Hotel and Plaza Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Plaza Centers
The main advantage of trading using opposite Dalata Hotel and Plaza Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Plaza Centers 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 Plaza Centers will offset losses from the drop in Plaza Centers' long position.| Dalata Hotel vs. Ondine Biomedical | Dalata Hotel vs. Europa Metals | Dalata Hotel vs. Lendinvest PLC | Dalata Hotel vs. Neometals |
| Plaza Centers vs. JB Hunt Transport | Plaza Centers vs. Park Hotels Resorts | Plaza Centers vs. Dalata Hotel Group | Plaza Centers vs. PPHE Hotel Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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