Correlation Between FLOW TRADERS and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS 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 FLOW TRADERS and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and Dalata Hotel Group, you can compare the effects of market volatilities on FLOW TRADERS 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 FLOW TRADERS with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Dalata Hotel.
Diversification Opportunities for FLOW TRADERS and Dalata Hotel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FLOW and Dalata is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD 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 FLOW TRADERS 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 FLOW TRADERS LTD 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 FLOW TRADERS i.e., FLOW TRADERS and Dalata Hotel go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Dalata Hotel
Assuming the 90 days horizon FLOW TRADERS LTD is expected to under-perform the Dalata Hotel. But the stock apears to be less risky and, when comparing its historical volatility, FLOW TRADERS LTD is 1.06 times less risky than Dalata Hotel. The stock trades about -0.03 of its potential returns per unit of risk. The Dalata Hotel Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 432.00 in Dalata Hotel Group on August 25, 2024 and sell it today you would earn a total of 15.00 from holding Dalata Hotel Group or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Dalata Hotel Group
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Dalata Hotel Group |
FLOW TRADERS and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Dalata Hotel
The main advantage of trading using opposite FLOW TRADERS and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS 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.| FLOW TRADERS vs. Macquarie Group Limited | FLOW TRADERS vs. MSCI Inc | FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. NMI Holdings |
| Dalata Hotel vs. InterContinental Hotels Group | Dalata Hotel vs. INTERCONT HOTELS | Dalata Hotel vs. Accor SA | Dalata Hotel vs. Choice Hotels International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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