Correlation Between Griffon and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Griffon and Dalata Hotel 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 Griffon and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Dalata Hotel Group, you can compare the effects of market volatilities on Griffon and Dalata Hotel 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 Griffon with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Dalata Hotel.
Diversification Opportunities for Griffon and Dalata Hotel
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffon and Dalata is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group and Griffon 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 Griffon are associated (or correlated) with Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Griffon i.e., Griffon and Dalata Hotel go up and down completely randomly.
Pair Corralation between Griffon and Dalata Hotel
If you would invest 6,980 in Griffon on September 12, 2024 and sell it today you would earn a total of 1,005 from holding Griffon or generate 14.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Griffon vs. Dalata Hotel Group
Performance |
| Timeline |
| Griffon |
| Dalata Hotel Group |
Griffon and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Dalata Hotel
The main advantage of trading using opposite Griffon and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Dalata Hotel vs. Keurig Dr Pepper | Dalata Hotel vs. Willamette Valley Vineyards | Dalata Hotel vs. Molson Coors Brewing | Dalata Hotel vs. Naked Wines plc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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