Correlation Between Dalata Hotel and STORE

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

Diversification Opportunities for Dalata Hotel and STORE

-0.05

Correlation Coefficient

Dalata Hotel  STORE

Good diversification

The 3 months correlation between Dalata and STORE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of Dalata Hotel i.e., Dalata Hotel and STORE go up and down completely randomly.

Pair Corralation between Dalata Hotel and STORE

If you would invest  488.00  in Dalata Hotel Group on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Dalata Hotel Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.56%
Values	Daily Returns

Dalata Hotel Group  vs.  STORE CAP P

Dalata Hotel Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dalata Hotel Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dalata Hotel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

STORE CAP P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STORE CAP P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for STORE CAP P investors.

Pair Trading with Dalata Hotel and STORE

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

The idea behind Dalata Hotel Group and STORE CAP P 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.