Correlation Between Ramsay Health and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Ramsay Health 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 Ramsay Health and Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and Dalata Hotel Group, you can compare the effects of market volatilities on Ramsay Health 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 Ramsay Health with a short position of Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and Dalata Hotel.
Diversification Opportunities for Ramsay Health and Dalata Hotel
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ramsay and Dalata is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care 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 Ramsay Health 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 Ramsay Health Care 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 Ramsay Health i.e., Ramsay Health and Dalata Hotel go up and down completely randomly.
Pair Corralation between Ramsay Health and Dalata Hotel
Assuming the 90 days horizon Ramsay Health Care is expected to under-perform the Dalata Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Ramsay Health Care is 1.22 times less risky than Dalata Hotel. The stock trades about -0.07 of its potential returns per unit of risk. The Dalata Hotel Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 321.00 in Dalata Hotel Group on September 26, 2024 and sell it today you would earn a total of 137.00 from holding Dalata Hotel Group or generate 42.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Health Care vs. Dalata Hotel Group
Performance |
| Timeline |
| Ramsay Health Care |
| Dalata Hotel Group |
Ramsay Health and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and Dalata Hotel
The main advantage of trading using opposite Ramsay Health and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health 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.| Ramsay Health vs. USWE SPORTS AB | Ramsay Health vs. GALENA MINING LTD | Ramsay Health vs. MINCO SILVER | Ramsay Health vs. Harmony Gold Mining |
| Dalata Hotel vs. Ramsay Health Care | Dalata Hotel vs. ITALIAN WINE BRANDS | Dalata Hotel vs. SHIP HEALTHCARE HLDGINC | Dalata Hotel vs. Bausch Health Companies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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