Correlation Between Sabra Health and DALATA HOTEL
Can any of the company-specific risk be diversified away by investing in both Sabra 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 Sabra 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 Sabra Health Care and DALATA HOTEL, you can compare the effects of market volatilities on Sabra 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 Sabra Health with a short position of DALATA HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and DALATA HOTEL.
Diversification Opportunities for Sabra Health and DALATA HOTEL
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and DALATA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and DALATA HOTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DALATA HOTEL and Sabra 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 Sabra 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 has no effect on the direction of Sabra Health i.e., Sabra Health and DALATA HOTEL go up and down completely randomly.
Pair Corralation between Sabra Health and DALATA HOTEL
Assuming the 90 days horizon Sabra Health is expected to generate 1.27 times less return on investment than DALATA HOTEL. But when comparing it to its historical volatility, Sabra Health Care is 2.28 times less risky than DALATA HOTEL. It trades about 0.07 of its potential returns per unit of risk. DALATA HOTEL is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 384.00 in DALATA HOTEL on September 21, 2024 and sell it today you would earn a total of 34.00 from holding DALATA HOTEL or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. DALATA HOTEL
Performance |
| Timeline |
| Sabra Health Care |
| DALATA HOTEL |
Sabra Health and DALATA HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and DALATA HOTEL
The main advantage of trading using opposite Sabra Health and DALATA HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra 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.| Sabra Health vs. Welltower | Sabra Health vs. Superior Plus Corp | Sabra Health vs. NMI Holdings | Sabra Health vs. SIVERS SEMICONDUCTORS AB |
| DALATA HOTEL vs. Sabra Health Care | DALATA HOTEL vs. VIRGIN WINES UK | DALATA HOTEL vs. National Health Investors | DALATA HOTEL vs. Gaztransport Technigaz SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |