Correlation Between Blue Coast and Kamat Hotels
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By analyzing existing cross correlation between Blue Coast Hotels and Kamat Hotels Limited, you can compare the effects of market volatilities on Blue Coast 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 Blue Coast with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Kamat Hotels.
Diversification Opportunities for Blue Coast and Kamat Hotels
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Kamat is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels 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 Blue Coast 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 Blue Coast Hotels 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 Blue Coast i.e., Blue Coast and Kamat Hotels go up and down completely randomly.
Pair Corralation between Blue Coast and Kamat Hotels
Assuming the 90 days trading horizon Blue Coast Hotels is expected to under-perform the Kamat Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Blue Coast Hotels is 2.23 times less risky than Kamat Hotels. The stock trades about -0.22 of its potential returns per unit of risk. The Kamat Hotels Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21,168 in Kamat Hotels Limited on August 31, 2024 and sell it today you would earn a total of 266.00 from holding Kamat Hotels Limited or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blue Coast Hotels vs. Kamat Hotels Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| Kamat Hotels Limited |
Blue Coast and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Kamat Hotels
The main advantage of trading using opposite Blue Coast and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast 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.| Blue Coast vs. Kingfa Science Technology | Blue Coast vs. GTL Limited | Blue Coast vs. Indo Amines Limited | Blue Coast vs. HDFC Mutual Fund |
| Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. GTL Limited | Kamat Hotels vs. Indo Amines Limited | Kamat Hotels vs. HDFC Mutual Fund |
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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