Correlation Between Bajaj Healthcare and Samhi Hotels
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By analyzing existing cross correlation between Bajaj Healthcare Limited and Samhi Hotels Limited, you can compare the effects of market volatilities on Bajaj Healthcare and Samhi Hotels 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 Bajaj Healthcare with a short position of Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Healthcare and Samhi Hotels.
Diversification Opportunities for Bajaj Healthcare and Samhi Hotels
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bajaj and Samhi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Healthcare Limited and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi Hotels Limited and Bajaj Healthcare 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 Bajaj Healthcare Limited are associated (or correlated) with Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of Bajaj Healthcare i.e., Bajaj Healthcare and Samhi Hotels go up and down completely randomly.
Pair Corralation between Bajaj Healthcare and Samhi Hotels
Assuming the 90 days trading horizon Bajaj Healthcare is expected to generate 1.25 times less return on investment than Samhi Hotels. In addition to that, Bajaj Healthcare is 1.25 times more volatile than Samhi Hotels Limited. It trades about 0.04 of its total potential returns per unit of risk. Samhi Hotels Limited is currently generating about 0.06 per unit of volatility. If you would invest 14,340 in Samhi Hotels Limited on October 4, 2024 and sell it today you would earn a total of 5,739 from holding Samhi Hotels Limited or generate 40.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 64.81% |
Values | Daily Returns |
Bajaj Healthcare Limited vs. Samhi Hotels Limited
Performance |
Timeline |
Bajaj Healthcare |
Samhi Hotels Limited |
Bajaj Healthcare and Samhi Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bajaj Healthcare and Samhi Hotels
The main advantage of trading using opposite Bajaj Healthcare and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Healthcare position performs unexpectedly, Samhi Hotels 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 Samhi Hotels will offset losses from the drop in Samhi Hotels' long position.Bajaj Healthcare vs. Bajaj Holdings Investment | Bajaj Healthcare vs. Total Transport Systems | Bajaj Healthcare vs. The State Trading | Bajaj Healthcare vs. POWERGRID Infrastructure Investment |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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