Correlation Between Dan Hotels and Fattal 1998
Can any of the company-specific risk be diversified away by investing in both Dan Hotels and Fattal 1998 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 Dan Hotels and Fattal 1998 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dan Hotels and Fattal 1998 Holdings, you can compare the effects of market volatilities on Dan Hotels and Fattal 1998 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 Dan Hotels with a short position of Fattal 1998. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dan Hotels and Fattal 1998.
Diversification Opportunities for Dan Hotels and Fattal 1998
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dan and Fattal is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dan Hotels and Fattal 1998 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fattal 1998 Holdings and Dan Hotels 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 Dan Hotels are associated (or correlated) with Fattal 1998. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fattal 1998 Holdings has no effect on the direction of Dan Hotels i.e., Dan Hotels and Fattal 1998 go up and down completely randomly.
Pair Corralation between Dan Hotels and Fattal 1998
Assuming the 90 days trading horizon Dan Hotels is expected to generate 12.69 times less return on investment than Fattal 1998. In addition to that, Dan Hotels is 1.2 times more volatile than Fattal 1998 Holdings. It trades about 0.0 of its total potential returns per unit of risk. Fattal 1998 Holdings is currently generating about 0.08 per unit of volatility. If you would invest 3,542,000 in Fattal 1998 Holdings on August 31, 2024 and sell it today you would earn a total of 1,730,000 from holding Fattal 1998 Holdings or generate 48.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dan Hotels vs. Fattal 1998 Holdings
Performance |
| Timeline |
| Dan Hotels |
| Fattal 1998 Holdings |
Dan Hotels and Fattal 1998 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dan Hotels and Fattal 1998
The main advantage of trading using opposite Dan Hotels and Fattal 1998 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dan Hotels position performs unexpectedly, Fattal 1998 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 Fattal 1998 will offset losses from the drop in Fattal 1998's long position.| Dan Hotels vs. El Al Israel | Dan Hotels vs. Magic Software Enterprises | Dan Hotels vs. Neto Malinda | Dan Hotels vs. Orbit Technologies |
| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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