Correlation Between Kamat Hotels and EMBASSY OFFICE
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By analyzing existing cross correlation between Kamat Hotels Limited and EMBASSY OFFICE PARKS, you can compare the effects of market volatilities on Kamat Hotels and EMBASSY OFFICE 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 Kamat Hotels with a short position of EMBASSY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and EMBASSY OFFICE.
Diversification Opportunities for Kamat Hotels and EMBASSY OFFICE
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamat and EMBASSY is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and EMBASSY OFFICE PARKS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBASSY OFFICE PARKS and Kamat Hotels 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 Kamat Hotels Limited are associated (or correlated) with EMBASSY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBASSY OFFICE PARKS has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and EMBASSY OFFICE go up and down completely randomly.
Pair Corralation between Kamat Hotels and EMBASSY OFFICE
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 1.44 times more return on investment than EMBASSY OFFICE. However, Kamat Hotels is 1.44 times more volatile than EMBASSY OFFICE PARKS. It trades about 0.29 of its potential returns per unit of risk. EMBASSY OFFICE PARKS is currently generating about -0.02 per unit of risk. If you would invest 20,633 in Kamat Hotels Limited on September 25, 2024 and sell it today you would earn a total of 3,021 from holding Kamat Hotels Limited or generate 14.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kamat Hotels Limited vs. EMBASSY OFFICE PARKS
Performance |
Timeline |
Kamat Hotels Limited |
EMBASSY OFFICE PARKS |
Kamat Hotels and EMBASSY OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kamat Hotels and EMBASSY OFFICE
The main advantage of trading using opposite Kamat Hotels and EMBASSY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, EMBASSY OFFICE 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 EMBASSY OFFICE will offset losses from the drop in EMBASSY OFFICE's long position.Kamat Hotels vs. Kaushalya Infrastructure Development | Kamat Hotels vs. Tarapur Transformers Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries |
EMBASSY OFFICE vs. DMCC SPECIALITY CHEMICALS | EMBASSY OFFICE vs. Thirumalai Chemicals Limited | EMBASSY OFFICE vs. JB Chemicals Pharmaceuticals | EMBASSY OFFICE vs. Action Construction Equipment |
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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