Correlation Between DALATA HOTEL and Heineken
Can any of the company-specific risk be diversified away by investing in both DALATA HOTEL and Heineken 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 Heineken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DALATA HOTEL and Heineken NV, you can compare the effects of market volatilities on DALATA HOTEL and Heineken 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 Heineken. Check out your portfolio center. Please also check ongoing floating volatility patterns of DALATA HOTEL and Heineken.
Diversification Opportunities for DALATA HOTEL and Heineken
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DALATA and Heineken is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding DALATA HOTEL and Heineken NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken NV 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 Heineken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken NV has no effect on the direction of DALATA HOTEL i.e., DALATA HOTEL and Heineken go up and down completely randomly.
Pair Corralation between DALATA HOTEL and Heineken
Assuming the 90 days trading horizon DALATA HOTEL is expected to generate 1.7 times more return on investment than Heineken. However, DALATA HOTEL is 1.7 times more volatile than Heineken NV. It trades about 0.01 of its potential returns per unit of risk. Heineken NV is currently generating about -0.15 per unit of risk. If you would invest 441.00 in DALATA HOTEL on November 7, 2024 and sell it today you would lose (1.00) from holding DALATA HOTEL or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DALATA HOTEL vs. Heineken NV
Performance |
| Timeline |
| DALATA HOTEL |
| Heineken NV |
DALATA HOTEL and Heineken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DALATA HOTEL and Heineken
The main advantage of trading using opposite DALATA HOTEL and Heineken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DALATA HOTEL position performs unexpectedly, Heineken 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 Heineken will offset losses from the drop in Heineken's long position.| DALATA HOTEL vs. Harmony Gold Mining | DALATA HOTEL vs. De Grey Mining | DALATA HOTEL vs. THAI BEVERAGE | DALATA HOTEL vs. MAG SILVER |
| Heineken vs. COMMERCIAL VEHICLE | Heineken vs. CarsalesCom | Heineken vs. SENECA FOODS A | Heineken vs. Performance Food Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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