Correlation Between Byke Hospitality and Kamat Hotels
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By analyzing existing cross correlation between The Byke Hospitality and Kamat Hotels Limited, you can compare the effects of market volatilities on Byke Hospitality 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 Byke Hospitality with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byke Hospitality and Kamat Hotels.
Diversification Opportunities for Byke Hospitality and Kamat Hotels
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Byke and Kamat is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Byke Hospitality 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 Byke Hospitality 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 The Byke Hospitality 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 Byke Hospitality i.e., Byke Hospitality and Kamat Hotels go up and down completely randomly.
Pair Corralation between Byke Hospitality and Kamat Hotels
Assuming the 90 days trading horizon The Byke Hospitality is expected to generate 1.17 times more return on investment than Kamat Hotels. However, Byke Hospitality is 1.17 times more volatile than Kamat Hotels Limited. It trades about 0.15 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.02 per unit of risk. If you would invest 6,708 in The Byke Hospitality on August 31, 2024 and sell it today you would earn a total of 595.00 from holding The Byke Hospitality or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Byke Hospitality vs. Kamat Hotels Limited
Performance |
| Timeline |
| Byke Hospitality |
| Kamat Hotels Limited |
Byke Hospitality and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byke Hospitality and Kamat Hotels
The main advantage of trading using opposite Byke Hospitality and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byke Hospitality 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.| Byke Hospitality vs. Kingfa Science Technology | Byke Hospitality vs. GTL Limited | Byke Hospitality vs. Indo Amines Limited | Byke Hospitality 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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