Correlation Between Dalata Hotel and PT Charoen
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and PT Charoen 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 PT Charoen 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 PT Charoen Pokphand, you can compare the effects of market volatilities on Dalata Hotel and PT Charoen 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 PT Charoen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and PT Charoen.
Diversification Opportunities for Dalata Hotel and PT Charoen
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalata and 0CP1 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and PT Charoen Pokphand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Charoen Pokphand 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 PT Charoen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Charoen Pokphand has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and PT Charoen go up and down completely randomly.
Pair Corralation between Dalata Hotel and PT Charoen
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.78 times more return on investment than PT Charoen. However, Dalata Hotel Group is 1.29 times less risky than PT Charoen. It trades about 0.06 of its potential returns per unit of risk. PT Charoen Pokphand is currently generating about -0.07 per unit of risk. If you would invest 442.00 in Dalata Hotel Group on October 12, 2024 and sell it today you would earn a total of 8.00 from holding Dalata Hotel Group or generate 1.81% 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. PT Charoen Pokphand
Performance |
| Timeline |
| Dalata Hotel Group |
| PT Charoen Pokphand |
Dalata Hotel and PT Charoen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and PT Charoen
The main advantage of trading using opposite Dalata Hotel and PT Charoen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, PT Charoen 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 PT Charoen will offset losses from the drop in PT Charoen's long position.| Dalata Hotel vs. Hyatt Hotels | Dalata Hotel vs. InterContinental Hotels Group | Dalata Hotel vs. INTERCONT HOTELS | Dalata Hotel vs. Wyndham Hotels Resorts |
| PT Charoen vs. VARIOUS EATERIES LS | PT Charoen vs. Casio Computer CoLtd | PT Charoen vs. DETALION GAMES SA | PT Charoen vs. ETFS Coffee ETC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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