Correlation Between Mrs Bectors and Oriental Hotels
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By analyzing existing cross correlation between Mrs Bectors Food and Oriental Hotels Limited, you can compare the effects of market volatilities on Mrs Bectors 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 Mrs Bectors with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mrs Bectors and Oriental Hotels.
Diversification Opportunities for Mrs Bectors and Oriental Hotels
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mrs and Oriental is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mrs Bectors Food and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Mrs Bectors 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 Mrs Bectors Food 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 Mrs Bectors i.e., Mrs Bectors and Oriental Hotels go up and down completely randomly.
Pair Corralation between Mrs Bectors and Oriental Hotels
Assuming the 90 days trading horizon Mrs Bectors Food is expected to generate 0.5 times more return on investment than Oriental Hotels. However, Mrs Bectors Food is 1.98 times less risky than Oriental Hotels. It trades about -0.25 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about -0.14 per unit of risk. If you would invest 161,290 in Mrs Bectors Food on October 30, 2024 and sell it today you would lose (12,460) from holding Mrs Bectors Food or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mrs Bectors Food vs. Oriental Hotels Limited
Performance |
| Timeline |
| Mrs Bectors Food |
| Oriental Hotels |
Mrs Bectors and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mrs Bectors and Oriental Hotels
The main advantage of trading using opposite Mrs Bectors and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mrs Bectors 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.| Mrs Bectors vs. Shemaroo Entertainment Limited | Mrs Bectors vs. Radaan Mediaworks India | Mrs Bectors vs. Jaypee Infratech Limited | Mrs Bectors vs. Kingfa Science Technology |
| Oriental Hotels vs. State Bank of | Oriental Hotels vs. Life Insurance | Oriental Hotels vs. HDFC Bank Limited | Oriental Hotels vs. ICICI Bank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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