Correlation Between Dalata Hotel and AT S

Can any of the company-specific risk be diversified away by investing in both Dalata Hotel and AT S 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 AT S 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 AT S Austria, you can compare the effects of market volatilities on Dalata Hotel and AT S 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 AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and AT S.

Diversification Opportunities for Dalata Hotel and AT S

-0.78

Correlation Coefficient

Dalata Hotel  AT S

Pay attention - limited upside

The 3 months correlation between Dalata and AUS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria 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 AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and AT S go up and down completely randomly.

Pair Corralation between Dalata Hotel and AT S

Assuming the 90 days horizon Dalata Hotel Group is expected to generate 0.48 times more return on investment than AT S. However, Dalata Hotel Group is 2.1 times less risky than AT S. It trades about 0.13 of its potential returns per unit of risk. AT S Austria is currently generating about -0.18 per unit of risk. If you would invest  436.00  in Dalata Hotel Group on September 28, 2024 and sell it today you would earn a total of  22.00  from holding Dalata Hotel Group or generate 5.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dalata Hotel Group  vs.  AT S Austria

Dalata Hotel Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dalata Hotel Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Dalata Hotel may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AT S Austria

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AT S Austria has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Dalata Hotel and AT S

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

The idea behind Dalata Hotel Group and AT S Austria 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.