Correlation Between Dalata Hotel and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Kandi Technologies 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 Kandi Technologies 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 Kandi Technologies Group, you can compare the effects of market volatilities on Dalata Hotel and Kandi Technologies 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 Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Kandi Technologies.
Diversification Opportunities for Dalata Hotel and Kandi Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalata and Kandi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies 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 Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Kandi Technologies go up and down completely randomly.
Pair Corralation between Dalata Hotel and Kandi Technologies
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.88 times more return on investment than Kandi Technologies. However, Dalata Hotel Group is 1.13 times less risky than Kandi Technologies. It trades about 0.06 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.08 per unit of risk. If you would invest 340.00 in Dalata Hotel Group on September 4, 2024 and sell it today you would earn a total of 148.00 from holding Dalata Hotel Group or generate 43.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Dalata Hotel Group vs. Kandi Technologies Group
Performance |
| Timeline |
| Dalata Hotel Group |
| Kandi Technologies |
Dalata Hotel and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Kandi Technologies
The main advantage of trading using opposite Dalata Hotel and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| Dalata Hotel vs. Apple Inc | Dalata Hotel vs. Microsoft | Dalata Hotel vs. Amazon Inc | Dalata Hotel vs. Alphabet Inc Class C |
| Kandi Technologies vs. Ford Motor | Kandi Technologies vs. General Motors | Kandi Technologies vs. Goodyear Tire Rubber | Kandi Technologies vs. Li Auto |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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