Correlation Between Dalata Hotel and PPHE HOTEL
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and PPHE HOTEL 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 PPHE HOTEL 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 PPHE HOTEL GROUP, you can compare the effects of market volatilities on Dalata Hotel and PPHE HOTEL 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 PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and PPHE HOTEL.
Diversification Opportunities for Dalata Hotel and PPHE HOTEL
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dalata and PPHE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP 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 PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and PPHE HOTEL go up and down completely randomly.
Pair Corralation between Dalata Hotel and PPHE HOTEL
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.95 times more return on investment than PPHE HOTEL. However, Dalata Hotel Group is 1.05 times less risky than PPHE HOTEL. It trades about 0.07 of its potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about 0.04 per unit of risk. If you would invest 439.00 in Dalata Hotel Group on November 6, 2024 and sell it today you would earn a total of 30.00 from holding Dalata Hotel Group or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalata Hotel Group vs. PPHE HOTEL GROUP
Performance |
| Timeline |
| Dalata Hotel Group |
| PPHE HOTEL GROUP |
Dalata Hotel and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and PPHE HOTEL
The main advantage of trading using opposite Dalata Hotel and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, PPHE HOTEL 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 PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| Dalata Hotel vs. NorAm Drilling AS | Dalata Hotel vs. Pembina Pipeline Corp | Dalata Hotel vs. BORR DRILLING NEW | Dalata Hotel vs. Luckin Coffee |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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