Correlation Between RTL Group and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both RTL Group 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 RTL Group and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RTL Group SA and Dalata Hotel Group, you can compare the effects of market volatilities on RTL Group 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 RTL Group with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and Dalata Hotel.
Diversification Opportunities for RTL Group and Dalata Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RTL and Dalata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA 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 RTL Group 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 RTL Group SA 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 RTL Group i.e., RTL Group and Dalata Hotel go up and down completely randomly.
Pair Corralation between RTL Group and Dalata Hotel
If you would invest 323.00 in RTL Group SA on October 29, 2024 and sell it today you would earn a total of 3.00 from holding RTL Group SA or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. Dalata Hotel Group
Performance |
| Timeline |
| RTL Group SA |
| Dalata Hotel Group |
RTL Group and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and Dalata Hotel
The main advantage of trading using opposite RTL Group and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group 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.| RTL Group vs. ITV plc | RTL Group vs. ITV PLC ADR | RTL Group vs. iHeartMedia | RTL Group vs. ProSiebenSat1 Media AG |
| Dalata Hotel vs. Ihuman Inc | Dalata Hotel vs. NorthWestern | Dalata Hotel vs. Udemy Inc | Dalata Hotel vs. CapitaLand Investment Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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