Correlation Between DALATA HOTEL and CHINA STATE
Can any of the company-specific risk be diversified away by investing in both DALATA HOTEL and CHINA STATE 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 CHINA STATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DALATA HOTEL and CHINA STATE STRU, you can compare the effects of market volatilities on DALATA HOTEL and CHINA STATE 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 CHINA STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DALATA HOTEL and CHINA STATE.
Diversification Opportunities for DALATA HOTEL and CHINA STATE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DALATA and CHINA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding DALATA HOTEL and CHINA STATE STRU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA STATE STRU 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 are associated (or correlated) with CHINA STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA STATE STRU has no effect on the direction of DALATA HOTEL i.e., DALATA HOTEL and CHINA STATE go up and down completely randomly.
Pair Corralation between DALATA HOTEL and CHINA STATE
If you would invest 419.00 in DALATA HOTEL on October 13, 2024 and sell it today you would earn a total of 11.00 from holding DALATA HOTEL or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
DALATA HOTEL vs. CHINA STATE STRU
Performance |
| Timeline |
| DALATA HOTEL |
| CHINA STATE STRU |
DALATA HOTEL and CHINA STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DALATA HOTEL and CHINA STATE
The main advantage of trading using opposite DALATA HOTEL and CHINA STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DALATA HOTEL position performs unexpectedly, CHINA STATE 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 CHINA STATE will offset losses from the drop in CHINA STATE's long position.| DALATA HOTEL vs. Aedas Homes SA | DALATA HOTEL vs. 24SEVENOFFICE GROUP AB | DALATA HOTEL vs. CAIRN HOMES EO | DALATA HOTEL vs. Taylor Morrison Home |
| CHINA STATE vs. Darden Restaurants | CHINA STATE vs. Summit Hotel Properties | CHINA STATE vs. British American Tobacco | CHINA STATE 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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