Correlation Between Dalata Hotel and Baillie Gifford

Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and Baillie Gifford 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 Dalata Hotel and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dalata Hotel Group and Baillie Gifford European, you can compare the effects of market volatilities on Dalata Hotel and Baillie Gifford 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 Dalata Hotel with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Baillie Gifford.

Diversification Opportunities for Dalata Hotel and Baillie Gifford

0.0

Correlation Coefficient

Dalata Hotel  Baillie Gifford

Pay attention - limited upside

The 3 months correlation between Dalata and Baillie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and Baillie Gifford European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford European and Dalata Hotel 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 Dalata Hotel Group are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford European has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and Baillie Gifford go up and down completely randomly.

Pair Corralation between Dalata Hotel and Baillie Gifford

If you would invest  38,500  in Dalata Hotel Group on December 22, 2024 and sell it today you would earn a total of  8,400  from holding Dalata Hotel Group or generate 21.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dalata Hotel Group  vs.  Baillie Gifford European

Dalata Hotel Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dalata Hotel Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Dalata Hotel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Baillie Gifford European

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baillie Gifford European are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Baillie Gifford unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dalata Hotel and Baillie Gifford

The main advantage of trading using opposite Dalata Hotel and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.

The idea behind Dalata Hotel Group and Baillie Gifford European 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.