Correlation Between Dan Hotels and Pluristem
Can any of the company-specific risk be diversified away by investing in both Dan Hotels and Pluristem 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 Pluristem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dan Hotels and Pluristem, you can compare the effects of market volatilities on Dan Hotels and Pluristem 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 Pluristem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dan Hotels and Pluristem.
Diversification Opportunities for Dan Hotels and Pluristem
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dan and Pluristem is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dan Hotels and Pluristem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pluristem 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 Pluristem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pluristem has no effect on the direction of Dan Hotels i.e., Dan Hotels and Pluristem go up and down completely randomly.
Pair Corralation between Dan Hotels and Pluristem
Assuming the 90 days trading horizon Dan Hotels is expected to generate 0.46 times more return on investment than Pluristem. However, Dan Hotels is 2.17 times less risky than Pluristem. It trades about 0.19 of its potential returns per unit of risk. Pluristem is currently generating about 0.07 per unit of risk. If you would invest 229,900 in Dan Hotels on September 12, 2024 and sell it today you would earn a total of 18,800 from holding Dan Hotels or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dan Hotels vs. Pluristem
Performance |
| Timeline |
| Dan Hotels |
| Pluristem |
Dan Hotels and Pluristem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dan Hotels and Pluristem
The main advantage of trading using opposite Dan Hotels and Pluristem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dan Hotels position performs unexpectedly, Pluristem 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 Pluristem will offset losses from the drop in Pluristem's long position.| Dan Hotels vs. Migdal Insurance | Dan Hotels vs. Clal Insurance Enterprises | Dan Hotels vs. Bank Leumi Le Israel | Dan Hotels vs. Israel Discount Bank |
| Pluristem vs. Lineage Cell Therapeutics | Pluristem vs. Enlivex Therapeutics | Pluristem vs. Compugen | Pluristem vs. Purple Biotech |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |