Correlation Between Chalet Hotels and NIIT
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By analyzing existing cross correlation between Chalet Hotels Limited and NIIT Limited, you can compare the effects of market volatilities on Chalet Hotels and NIIT 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 NIIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chalet Hotels and NIIT.
Diversification Opportunities for Chalet Hotels and NIIT
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chalet and NIIT is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chalet Hotels Limited and NIIT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIIT 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 NIIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIIT Limited has no effect on the direction of Chalet Hotels i.e., Chalet Hotels and NIIT go up and down completely randomly.
Pair Corralation between Chalet Hotels and NIIT
Assuming the 90 days trading horizon Chalet Hotels Limited is expected to generate 0.81 times more return on investment than NIIT. However, Chalet Hotels Limited is 1.24 times less risky than NIIT. It trades about 0.31 of its potential returns per unit of risk. NIIT Limited is currently generating about 0.1 per unit of risk. If you would invest 83,890 in Chalet Hotels Limited on September 20, 2024 and sell it today you would earn a total of 16,210 from holding Chalet Hotels Limited or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chalet Hotels Limited vs. NIIT Limited
Performance |
| Timeline |
| Chalet Hotels Limited |
| NIIT Limited |
Chalet Hotels and NIIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chalet Hotels and NIIT
The main advantage of trading using opposite Chalet Hotels and NIIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chalet Hotels position performs unexpectedly, NIIT 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 NIIT will offset losses from the drop in NIIT's long position.| Chalet Hotels vs. Indian Railway Finance | Chalet Hotels vs. Cholamandalam Financial Holdings | Chalet Hotels vs. Reliance Industries Limited | Chalet Hotels vs. Tata Consultancy Services |
| NIIT vs. Sudarshan Chemical Industries | NIIT vs. JGCHEMICALS LIMITED | NIIT vs. Network18 Media Investments | NIIT vs. Mangalore Chemicals Fertilizers |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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