Correlation Between Dalata Hotel and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Dalata Hotel and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and MEDICAL FACILITIES.
Diversification Opportunities for Dalata Hotel and MEDICAL FACILITIES
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalata and MEDICAL is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Dalata Hotel and MEDICAL FACILITIES
Assuming the 90 days horizon Dalata Hotel is expected to generate 2.5 times less return on investment than MEDICAL FACILITIES. But when comparing it to its historical volatility, Dalata Hotel Group is 1.3 times less risky than MEDICAL FACILITIES. It trades about 0.04 of its potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 469.00 in MEDICAL FACILITIES NEW on August 30, 2024 and sell it today you would earn a total of 601.00 from holding MEDICAL FACILITIES NEW or generate 128.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalata Hotel Group vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Dalata Hotel Group |
| MEDICAL FACILITIES NEW |
Dalata Hotel and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and MEDICAL FACILITIES
The main advantage of trading using opposite Dalata Hotel and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Dalata Hotel vs. Jacquet Metal Service | Dalata Hotel vs. GREENX METALS LTD | Dalata Hotel vs. Internet Thailand PCL | Dalata Hotel vs. GALENA MINING LTD |
| MEDICAL FACILITIES vs. AM EAGLE OUTFITTERS | MEDICAL FACILITIES vs. Genco Shipping Trading | MEDICAL FACILITIES vs. Liberty Broadband | MEDICAL FACILITIES vs. Gaztransport Technigaz SA |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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