Correlation Between DALATA HOTEL and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both DALATA HOTEL and TIMES CHINA 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 TIMES CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DALATA HOTEL and TIMES CHINA HLDGS, you can compare the effects of market volatilities on DALATA HOTEL and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DALATA HOTEL and TIMES CHINA.
Diversification Opportunities for DALATA HOTEL and TIMES CHINA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DALATA and TIMES is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DALATA HOTEL and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of DALATA HOTEL i.e., DALATA HOTEL and TIMES CHINA go up and down completely randomly.
Pair Corralation between DALATA HOTEL and TIMES CHINA
Assuming the 90 days trading horizon DALATA HOTEL is expected to generate 0.4 times more return on investment than TIMES CHINA. However, DALATA HOTEL is 2.48 times less risky than TIMES CHINA. It trades about -0.01 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about -0.03 per unit of risk. If you would invest 442.00 in DALATA HOTEL on November 4, 2024 and sell it today you would lose (4.00) from holding DALATA HOTEL or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DALATA HOTEL vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| DALATA HOTEL |
| TIMES CHINA HLDGS |
DALATA HOTEL and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DALATA HOTEL and TIMES CHINA
The main advantage of trading using opposite DALATA HOTEL and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DALATA HOTEL position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.| DALATA HOTEL vs. Corporate Office Properties | DALATA HOTEL vs. SOUTHWEST AIRLINES | DALATA HOTEL vs. CREO MEDICAL GRP | DALATA HOTEL vs. PEPTONIC MEDICAL |
| TIMES CHINA vs. HOCHSCHILD MINING | TIMES CHINA vs. DETALION GAMES SA | TIMES CHINA vs. DXC Technology Co | TIMES CHINA vs. OURGAME INTHOLDL 00005 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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