Correlation Between Dan Hotels and Delek
Can any of the company-specific risk be diversified away by investing in both Dan Hotels and Delek 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 Dan Hotels and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dan Hotels and Delek Group, you can compare the effects of market volatilities on Dan Hotels and Delek 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 Dan Hotels with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dan Hotels and Delek.
Diversification Opportunities for Dan Hotels and Delek
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dan and Delek is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dan Hotels and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Dan Hotels 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 Dan Hotels are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Dan Hotels i.e., Dan Hotels and Delek go up and down completely randomly.
Pair Corralation between Dan Hotels and Delek
Assuming the 90 days trading horizon Dan Hotels is expected to generate 12.47 times less return on investment than Delek. But when comparing it to its historical volatility, Dan Hotels is 1.09 times less risky than Delek. It trades about 0.02 of its potential returns per unit of risk. Delek Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,887,550 in Delek Group on September 12, 2024 and sell it today you would earn a total of 879,450 from holding Delek Group or generate 22.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dan Hotels vs. Delek Group
Performance |
Timeline |
Dan Hotels |
Delek Group |
Dan Hotels and Delek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dan Hotels and Delek
The main advantage of trading using opposite Dan Hotels and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dan Hotels position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.Dan Hotels vs. Migdal Insurance | Dan Hotels vs. Clal Insurance Enterprises | Dan Hotels vs. Bank Leumi Le Israel | Dan Hotels vs. Israel Discount Bank |
Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |