Correlation Between Dalata Hotel and GOLDEN CROSS

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

Diversification Opportunities for Dalata Hotel and GOLDEN CROSS

0.0

Correlation Coefficient

Dalata Hotel  GOLDEN CROSS

Pay attention - limited upside

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

Pair Corralation between Dalata Hotel and GOLDEN CROSS

If you would invest  306.00  in Dalata Hotel Group on September 19, 2024 and sell it today you would earn a total of  149.00  from holding Dalata Hotel Group or generate 48.69% 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.  GOLDEN CROSS RES

Dalata Hotel Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dalata Hotel Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Dalata Hotel may actually be approaching a critical reversion point that can send shares even higher in January 2025.

GOLDEN CROSS RES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOLDEN CROSS RES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, GOLDEN CROSS is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dalata Hotel and GOLDEN CROSS

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

The idea behind Dalata Hotel Group and GOLDEN CROSS RES 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.