Correlation Between Blue Coast and Samhi Hotels
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By analyzing existing cross correlation between Blue Coast Hotels and Samhi Hotels Limited, you can compare the effects of market volatilities on Blue Coast and Samhi 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 Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Samhi Hotels.
Diversification Opportunities for Blue Coast and Samhi Hotels
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Samhi is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi 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 Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of Blue Coast i.e., Blue Coast and Samhi Hotels go up and down completely randomly.
Pair Corralation between Blue Coast and Samhi Hotels
Assuming the 90 days trading horizon Blue Coast Hotels is expected to under-perform the Samhi Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Blue Coast Hotels is 1.66 times less risky than Samhi Hotels. The stock trades about -0.22 of its potential returns per unit of risk. The Samhi Hotels Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 18,282 in Samhi Hotels Limited on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Samhi Hotels Limited or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blue Coast Hotels vs. Samhi Hotels Limited
Performance |
| Timeline |
| Blue Coast Hotels |
| Samhi Hotels Limited |
Blue Coast and Samhi Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Samhi Hotels
The main advantage of trading using opposite Blue Coast and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Samhi 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 Samhi Hotels will offset losses from the drop in Samhi Hotels' long position.| Blue Coast vs. Indian Railway Finance | Blue Coast vs. Cholamandalam Financial Holdings | Blue Coast vs. Reliance Industries Limited | Blue Coast vs. Tata Consultancy Services |
| Samhi Hotels vs. Indian Railway Finance | Samhi Hotels vs. Cholamandalam Financial Holdings | Samhi Hotels vs. Reliance Industries Limited | Samhi Hotels vs. Tata Consultancy Services |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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