Correlation Between Oriental Hotels and Kamat Hotels
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By analyzing existing cross correlation between Oriental Hotels Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on Oriental Hotels and Kamat 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 Oriental Hotels with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Kamat Hotels.
Diversification Opportunities for Oriental Hotels and Kamat Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Kamat is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited and Oriental 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 Oriental Hotels Limited are associated (or correlated) with Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Kamat Hotels go up and down completely randomly.
Pair Corralation between Oriental Hotels and Kamat Hotels
Assuming the 90 days trading horizon Oriental Hotels is expected to generate 3.33 times less return on investment than Kamat Hotels. But when comparing it to its historical volatility, Oriental Hotels Limited is 1.16 times less risky than Kamat Hotels. It trades about 0.03 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20,133 in Kamat Hotels Limited on September 25, 2024 and sell it today you would earn a total of 3,521 from holding Kamat Hotels Limited or generate 17.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Oriental Hotels Limited vs. Kamat Hotels Limited
Performance |
Timeline |
Oriental Hotels |
Kamat Hotels Limited |
Oriental Hotels and Kamat Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oriental Hotels and Kamat Hotels
The main advantage of trading using opposite Oriental Hotels and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Kamat 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.Oriental Hotels vs. Associated Alcohols Breweries | Oriental Hotels vs. MIRC Electronics Limited | Oriental Hotels vs. MIC Electronics Limited | Oriental Hotels vs. Central Bank of |
Kamat Hotels vs. Kaushalya Infrastructure Development | Kamat Hotels vs. Tarapur Transformers Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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