Correlation Between Chalet Hotels and GM Breweries
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By analyzing existing cross correlation between Chalet Hotels Limited and GM Breweries Limited, you can compare the effects of market volatilities on Chalet Hotels and GM Breweries 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 Chalet Hotels with a short position of GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chalet Hotels and GM Breweries.
Diversification Opportunities for Chalet Hotels and GM Breweries
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chalet and GMBREW is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chalet Hotels Limited and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries Limited and Chalet Hotels 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 Chalet Hotels Limited are associated (or correlated) with GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of Chalet Hotels i.e., Chalet Hotels and GM Breweries go up and down completely randomly.
Pair Corralation between Chalet Hotels and GM Breweries
Assuming the 90 days trading horizon Chalet Hotels Limited is expected to under-perform the GM Breweries. But the stock apears to be less risky and, when comparing its historical volatility, Chalet Hotels Limited is 1.34 times less risky than GM Breweries. The stock trades about -0.56 of its potential returns per unit of risk. The GM Breweries Limited is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 84,675 in GM Breweries Limited on November 4, 2024 and sell it today you would lose (13,035) from holding GM Breweries Limited or give up 15.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chalet Hotels Limited vs. GM Breweries Limited
Performance |
| Timeline |
| Chalet Hotels Limited |
| GM Breweries Limited |
Chalet Hotels and GM Breweries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chalet Hotels and GM Breweries
The main advantage of trading using opposite Chalet Hotels and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chalet Hotels position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.| Chalet Hotels vs. Consolidated Construction Consortium | Chalet Hotels vs. Biofil Chemicals Pharmaceuticals | Chalet Hotels vs. Refex Industries Limited | Chalet Hotels vs. Kingfa Science Technology |
| GM Breweries vs. Total Transport Systems | GM Breweries vs. Cholamandalam Investment and | GM Breweries vs. BF Investment Limited | GM Breweries vs. Mask Investments 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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