Correlation Between DGELN and InterContinental
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By analyzing existing cross correlation between DGELN 52 24 OCT 25 and InterContinental Hotels Group, you can compare the effects of market volatilities on DGELN and InterContinental 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 DGELN with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGELN and InterContinental.
Diversification Opportunities for DGELN and InterContinental
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DGELN and InterContinental is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DGELN 52 24 OCT 25 and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and DGELN 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 DGELN 52 24 OCT 25 are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of DGELN i.e., DGELN and InterContinental go up and down completely randomly.
Pair Corralation between DGELN and InterContinental
Assuming the 90 days trading horizon DGELN 52 24 OCT 25 is expected to under-perform the InterContinental. But the bond apears to be less risky and, when comparing its historical volatility, DGELN 52 24 OCT 25 is 15.95 times less risky than InterContinental. The bond trades about -0.03 of its potential returns per unit of risk. The InterContinental Hotels Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,035 in InterContinental Hotels Group on November 2, 2024 and sell it today you would earn a total of 2,560 from holding InterContinental Hotels Group or generate 25.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 64.08% |
| Values | Daily Returns |
DGELN 52 24 OCT 25 vs. InterContinental Hotels Group
Performance |
| Timeline |
| DGELN 52 24 |
| InterContinental Hotels |
DGELN and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DGELN and InterContinental
The main advantage of trading using opposite DGELN and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGELN position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.The idea behind DGELN 52 24 OCT 25 and InterContinental Hotels Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| InterContinental vs. Hyatt Hotels | InterContinental vs. Choice Hotels International | InterContinental vs. Hilton Worldwide Holdings | InterContinental vs. Wyndham Hotels Resorts |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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