Correlation Between Dalata Hotel and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and FUTURE GAMING 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 FUTURE GAMING 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 FUTURE GAMING GRP, you can compare the effects of market volatilities on Dalata Hotel and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and FUTURE GAMING.
Diversification Opportunities for Dalata Hotel and FUTURE GAMING
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dalata and FUTURE is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Dalata Hotel and FUTURE GAMING
Assuming the 90 days horizon Dalata Hotel is expected to generate 3.56 times less return on investment than FUTURE GAMING. But when comparing it to its historical volatility, Dalata Hotel Group is 3.48 times less risky than FUTURE GAMING. It trades about 0.04 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 36.00 in FUTURE GAMING GRP on August 24, 2024 and sell it today you would earn a total of 22.00 from holding FUTURE GAMING GRP or generate 61.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalata Hotel Group vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Dalata Hotel Group |
| FUTURE GAMING GRP |
Dalata Hotel and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and FUTURE GAMING
The main advantage of trading using opposite Dalata Hotel and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Dalata Hotel vs. Hyatt Hotels | Dalata Hotel vs. InterContinental Hotels Group | Dalata Hotel vs. INTERCONT HOTELS | Dalata Hotel vs. Accor SA |
| FUTURE GAMING vs. Aegean Airlines SA | FUTURE GAMING vs. Dalata Hotel Group | FUTURE GAMING vs. JAPAN AIRLINES | FUTURE GAMING vs. DALATA HOTEL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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