Correlation Between Agarwal Industrial and SINCLAIRS HOTELS
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By analyzing existing cross correlation between Agarwal Industrial and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on Agarwal Industrial and SINCLAIRS 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 Agarwal Industrial with a short position of SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agarwal Industrial and SINCLAIRS HOTELS.
Diversification Opportunities for Agarwal Industrial and SINCLAIRS HOTELS
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Agarwal and SINCLAIRS is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Agarwal Industrial and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD and Agarwal Industrial 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 Agarwal Industrial are associated (or correlated) with SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of Agarwal Industrial i.e., Agarwal Industrial and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between Agarwal Industrial and SINCLAIRS HOTELS
Assuming the 90 days trading horizon Agarwal Industrial is expected to generate 1.29 times more return on investment than SINCLAIRS HOTELS. However, Agarwal Industrial is 1.29 times more volatile than SINCLAIRS HOTELS ORD. It trades about 0.04 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about -0.05 per unit of risk. If you would invest 96,775 in Agarwal Industrial on September 4, 2024 and sell it today you would earn a total of 21,625 from holding Agarwal Industrial or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 66.53% |
| Values | Daily Returns |
Agarwal Industrial vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| Agarwal Industrial |
| SINCLAIRS HOTELS ORD |
Agarwal Industrial and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agarwal Industrial and SINCLAIRS HOTELS
The main advantage of trading using opposite Agarwal Industrial and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agarwal Industrial position performs unexpectedly, SINCLAIRS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.The idea behind Agarwal Industrial and SINCLAIRS HOTELS ORD 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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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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