Correlation Between Alba Mineral and Dalata Hotel

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

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

Diversification Opportunities for Alba Mineral and Dalata Hotel

-0.16

Correlation Coefficient

Alba Mineral  Dalata Hotel

Good diversification

The 3 months correlation between Alba and Dalata is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Alba Mineral Resources and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group and Alba Mineral 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 Alba Mineral Resources are associated (or correlated) with Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Alba Mineral i.e., Alba Mineral and Dalata Hotel go up and down completely randomly.

Pair Corralation between Alba Mineral and Dalata Hotel

Assuming the 90 days trading horizon Alba Mineral Resources is expected to under-perform the Dalata Hotel. In addition to that, Alba Mineral is 5.14 times more volatile than Dalata Hotel Group. It trades about -0.05 of its total potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.19 per unit of volatility. If you would invest  44,000  in Dalata Hotel Group on April 22, 2025 and sell it today you would earn a total of  10,500  from holding Dalata Hotel Group or generate 23.86% return on investment over 90 days.

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

Alba Mineral Resources  vs.  Dalata Hotel Group

Alba Mineral Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alba Mineral Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dalata Hotel Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dalata Hotel Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Dalata Hotel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alba Mineral and Dalata Hotel

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

The idea behind Alba Mineral Resources and Dalata Hotel Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .