Correlation Between Dalata Hotel and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Eldorado Gold 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 Eldorado Gold 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 Eldorado Gold Corp, you can compare the effects of market volatilities on Dalata Hotel and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Eldorado Gold.
Diversification Opportunities for Dalata Hotel and Eldorado Gold
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dalata and Eldorado is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Eldorado Gold go up and down completely randomly.
Pair Corralation between Dalata Hotel and Eldorado Gold
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.04 times more return on investment than Eldorado Gold. However, Dalata Hotel Group is 23.9 times less risky than Eldorado Gold. It trades about 0.13 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 484.00 in Dalata Hotel Group on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Dalata Hotel Group or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalata Hotel Group vs. Eldorado Gold Corp
Performance |
| Timeline |
| Dalata Hotel Group |
| Eldorado Gold Corp |
Dalata Hotel and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Eldorado Gold
The main advantage of trading using opposite Dalata Hotel and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Dalata Hotel vs. NH Foods Ltd | Dalata Hotel vs. Getty Realty | Dalata Hotel vs. Beyond Meat | Dalata Hotel vs. Marfrig Global Foods |
| Eldorado Gold vs. Franco Nevada | Eldorado Gold vs. Alamos Gold | Eldorado Gold vs. Seabridge Gold | Eldorado Gold vs. Agnico Eagle Mines |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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