Correlation Between Bajaj Holdings and Oriental Hotels
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By analyzing existing cross correlation between Bajaj Holdings Investment and Oriental Hotels Limited, you can compare the effects of market volatilities on Bajaj Holdings and Oriental 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 Holdings with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Oriental Hotels.
Diversification Opportunities for Bajaj Holdings and Oriental Hotels
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bajaj and Oriental is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Bajaj Holdings 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 Holdings Investment are associated (or correlated) with Oriental Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Hotels has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Oriental Hotels go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Oriental Hotels
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.64 times more return on investment than Oriental Hotels. However, Bajaj Holdings Investment is 1.55 times less risky than Oriental Hotels. It trades about 0.05 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about 0.02 per unit of risk. If you would invest 1,031,500 in Bajaj Holdings Investment on September 1, 2024 and sell it today you would earn a total of 15,325 from holding Bajaj Holdings Investment or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Oriental Hotels Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Oriental Hotels |
Bajaj Holdings and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Oriental Hotels
The main advantage of trading using opposite Bajaj Holdings and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Oriental 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 Oriental Hotels will offset losses from the drop in Oriental Hotels' long position.| Bajaj Holdings vs. Sarveshwar Foods Limited | Bajaj Holdings vs. Hindustan Foods Limited | Bajaj Holdings vs. Kohinoor Foods Limited | Bajaj Holdings vs. Electronics Mart India |
| Oriental Hotels vs. MRF Limited | Oriental Hotels vs. Bosch Limited | Oriental Hotels vs. Bajaj Holdings Investment | Oriental Hotels vs. Vardhman Holdings Limited |
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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