Correlation Between Dalata Hotel and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Marti 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 Marti 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 Marti Technologies, you can compare the effects of market volatilities on Dalata Hotel and Marti 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Marti Technologies.
Diversification Opportunities for Dalata Hotel and Marti Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalata and Marti is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Marti Technologies go up and down completely randomly.
Pair Corralation between Dalata Hotel and Marti Technologies
Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.31 times more return on investment than Marti Technologies. However, Dalata Hotel Group is 3.27 times less risky than Marti Technologies. It trades about 0.04 of its potential returns per unit of risk. Marti Technologies is currently generating about -0.01 per unit of risk. If you would invest 336.00 in Dalata Hotel Group on August 31, 2024 and sell it today you would earn a total of 152.00 from holding Dalata Hotel Group or generate 45.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.82% |
| Values | Daily Returns |
Dalata Hotel Group vs. Marti Technologies
Performance |
| Timeline |
| Dalata Hotel Group |
| Marti Technologies |
Dalata Hotel and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Marti Technologies
The main advantage of trading using opposite Dalata Hotel and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Marti 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| Dalata Hotel vs. NH Foods Ltd | Dalata Hotel vs. Getty Realty | Dalata Hotel vs. Beyond Meat | Dalata Hotel vs. Marfrig Global Foods |
| Marti Technologies vs. Electrovaya Common Shares | Marti Technologies vs. Avis Budget Group | Marti Technologies vs. Supercom | Marti Technologies vs. United Rentals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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