Correlation Between Dalata Hotel and Hisense Home
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Hisense Home 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 Hisense Home 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 Hisense Home Appliances, you can compare the effects of market volatilities on Dalata Hotel and Hisense Home 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 Hisense Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Hisense Home.
Diversification Opportunities for Dalata Hotel and Hisense Home
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalata and Hisense is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Hisense Home Appliances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisense Home Appliances 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 Hisense Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisense Home Appliances has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Hisense Home go up and down completely randomly.
Pair Corralation between Dalata Hotel and Hisense Home
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.57 times more return on investment than Hisense Home. However, Dalata Hotel Group is 1.76 times less risky than Hisense Home. It trades about 0.1 of its potential returns per unit of risk. Hisense Home Appliances is currently generating about 0.05 per unit of risk. If you would invest 405.00 in Dalata Hotel Group on October 14, 2024 and sell it today you would earn a total of 46.00 from holding Dalata Hotel Group or generate 11.36% 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. Hisense Home Appliances
Performance |
| Timeline |
| Dalata Hotel Group |
| Hisense Home Appliances |
Dalata Hotel and Hisense Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Hisense Home
The main advantage of trading using opposite Dalata Hotel and Hisense Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Hisense Home 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 Hisense Home will offset losses from the drop in Hisense Home's long position.| Dalata Hotel vs. UNIQA INSURANCE GR | Dalata Hotel vs. REVO INSURANCE SPA | Dalata Hotel vs. Hua Hong Semiconductor | Dalata Hotel vs. Nordic Semiconductor ASA |
| Hisense Home vs. Playa Hotels Resorts | Hisense Home vs. Dalata Hotel Group | Hisense Home vs. Summit Hotel Properties | Hisense Home vs. Infrastrutture Wireless Italiane |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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