Correlation Between Melisron and Dan Hotels
Can any of the company-specific risk be diversified away by investing in both Melisron and Dan Hotels 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 Melisron and Dan Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melisron and Dan Hotels, you can compare the effects of market volatilities on Melisron and Dan Hotels 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 Melisron with a short position of Dan Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melisron and Dan Hotels.
Diversification Opportunities for Melisron and Dan Hotels
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melisron and Dan is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Melisron and Dan Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dan Hotels and Melisron 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 Melisron are associated (or correlated) with Dan Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dan Hotels has no effect on the direction of Melisron i.e., Melisron and Dan Hotels go up and down completely randomly.
Pair Corralation between Melisron and Dan Hotels
Assuming the 90 days trading horizon Melisron is expected to generate 1.69 times more return on investment than Dan Hotels. However, Melisron is 1.69 times more volatile than Dan Hotels. It trades about 0.24 of its potential returns per unit of risk. Dan Hotels is currently generating about -0.24 per unit of risk. If you would invest 2,864,000 in Melisron on August 27, 2024 and sell it today you would earn a total of 186,000 from holding Melisron or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melisron vs. Dan Hotels
Performance |
| Timeline |
| Melisron |
| Dan Hotels |
Melisron and Dan Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melisron and Dan Hotels
The main advantage of trading using opposite Melisron and Dan Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melisron position performs unexpectedly, Dan Hotels 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 Dan Hotels will offset losses from the drop in Dan Hotels' long position.| Melisron vs. Azrieli Group | Melisron vs. Alony Hetz Properties | Melisron vs. Amot Investments | Melisron vs. Bank Leumi Le Israel |
| Dan Hotels vs. Wesure Global Tech | Dan Hotels vs. ICL Israel Chemicals | Dan Hotels vs. Payment Financial Technologies | Dan Hotels vs. Millennium Food Tech LP |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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