Correlation Between Gerresheimer and DALATA HOTEL
Can any of the company-specific risk be diversified away by investing in both Gerresheimer 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 Gerresheimer and DALATA HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gerresheimer AG and DALATA HOTEL, you can compare the effects of market volatilities on Gerresheimer 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 Gerresheimer with a short position of DALATA HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gerresheimer and DALATA HOTEL.
Diversification Opportunities for Gerresheimer and DALATA HOTEL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gerresheimer and DALATA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gerresheimer AG and DALATA HOTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DALATA HOTEL and Gerresheimer 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 Gerresheimer AG 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 has no effect on the direction of Gerresheimer i.e., Gerresheimer and DALATA HOTEL go up and down completely randomly.
Pair Corralation between Gerresheimer and DALATA HOTEL
Assuming the 90 days trading horizon Gerresheimer AG is expected to under-perform the DALATA HOTEL. But the stock apears to be less risky and, when comparing its historical volatility, Gerresheimer AG is 1.89 times less risky than DALATA HOTEL. The stock trades about -0.08 of its potential returns per unit of risk. The DALATA HOTEL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 394.00 in DALATA HOTEL on August 30, 2024 and sell it today you would earn a total of 20.00 from holding DALATA HOTEL or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Gerresheimer AG vs. DALATA HOTEL
Performance |
| Timeline |
| Gerresheimer AG |
| DALATA HOTEL |
Gerresheimer and DALATA HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gerresheimer and DALATA HOTEL
The main advantage of trading using opposite Gerresheimer and DALATA HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gerresheimer 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.| Gerresheimer vs. HOYA Corporation | Gerresheimer vs. Superior Plus Corp | Gerresheimer vs. NMI Holdings | Gerresheimer vs. SIVERS SEMICONDUCTORS AB |
| DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Superior Plus Corp | DALATA HOTEL vs. SIVERS SEMICONDUCTORS AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |