Correlation Between Tangerine Beach and Dolphin Hotels
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By analyzing existing cross correlation between Tangerine Beach Hotels and Dolphin Hotels PLC, you can compare the effects of market volatilities on Tangerine Beach and Dolphin 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 Tangerine Beach with a short position of Dolphin Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Beach and Dolphin Hotels.
Diversification Opportunities for Tangerine Beach and Dolphin Hotels
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tangerine and Dolphin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Beach Hotels and Dolphin Hotels PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Hotels PLC and Tangerine Beach 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 Tangerine Beach Hotels are associated (or correlated) with Dolphin Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Hotels PLC has no effect on the direction of Tangerine Beach i.e., Tangerine Beach and Dolphin Hotels go up and down completely randomly.
Pair Corralation between Tangerine Beach and Dolphin Hotels
Assuming the 90 days trading horizon Tangerine Beach is expected to generate 5.83 times less return on investment than Dolphin Hotels. But when comparing it to its historical volatility, Tangerine Beach Hotels is 1.32 times less risky than Dolphin Hotels. It trades about 0.06 of its potential returns per unit of risk. Dolphin Hotels PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,020 in Dolphin Hotels PLC on August 31, 2024 and sell it today you would earn a total of 1,190 from holding Dolphin Hotels PLC or generate 39.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.61% |
| Values | Daily Returns |
Tangerine Beach Hotels vs. Dolphin Hotels PLC
Performance |
| Timeline |
| Tangerine Beach Hotels |
| Dolphin Hotels PLC |
Tangerine Beach and Dolphin Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Beach and Dolphin Hotels
The main advantage of trading using opposite Tangerine Beach and Dolphin Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Beach position performs unexpectedly, Dolphin 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 Dolphin Hotels will offset losses from the drop in Dolphin Hotels' long position.| Tangerine Beach vs. BROWNS INVESTMENTS PLC | Tangerine Beach vs. Keells Food Products | Tangerine Beach vs. Ceylon Guardian Investment | Tangerine Beach vs. RENUKA FOODS PLC |
| Dolphin Hotels vs. Amaya Leisure PLC | Dolphin Hotels vs. Carson Cumberbatch PLC | Dolphin Hotels vs. National Development Bank | Dolphin Hotels vs. RENUKA FOODS PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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