Correlation Between DALATA HOTEL and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both DALATA HOTEL and GRIFFIN MINING 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 GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DALATA HOTEL and GRIFFIN MINING LTD, you can compare the effects of market volatilities on DALATA HOTEL and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DALATA HOTEL and GRIFFIN MINING.
Diversification Opportunities for DALATA HOTEL and GRIFFIN MINING
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DALATA and GRIFFIN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DALATA HOTEL and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of DALATA HOTEL i.e., DALATA HOTEL and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between DALATA HOTEL and GRIFFIN MINING
Assuming the 90 days trading horizon DALATA HOTEL is expected to generate 1.06 times less return on investment than GRIFFIN MINING. In addition to that, DALATA HOTEL is 1.81 times more volatile than GRIFFIN MINING LTD. It trades about 0.04 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 per unit of volatility. If you would invest 80.00 in GRIFFIN MINING LTD on August 29, 2024 and sell it today you would earn a total of 90.00 from holding GRIFFIN MINING LTD or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DALATA HOTEL vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| DALATA HOTEL |
| GRIFFIN MINING LTD |
DALATA HOTEL and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DALATA HOTEL and GRIFFIN MINING
The main advantage of trading using opposite DALATA HOTEL and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DALATA HOTEL position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Microsoft | DALATA HOTEL vs. Microsoft |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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