Correlation Between CREDITACCESS GRAMEEN and Royal Orchid
Specify exactly 2 symbols:
By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Royal Orchid Hotels, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and Royal Orchid 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 CREDITACCESS GRAMEEN with a short position of Royal Orchid. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Royal Orchid.
Diversification Opportunities for CREDITACCESS GRAMEEN and Royal Orchid
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDITACCESS and Royal is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and Royal Orchid Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Orchid Hotels and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED are associated (or correlated) with Royal Orchid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Orchid Hotels has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Royal Orchid go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Royal Orchid
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 1.59 times more return on investment than Royal Orchid. However, CREDITACCESS GRAMEEN is 1.59 times more volatile than Royal Orchid Hotels. It trades about 0.15 of its potential returns per unit of risk. Royal Orchid Hotels is currently generating about -0.15 per unit of risk. If you would invest 93,455 in CREDITACCESS GRAMEEN LIMITED on November 4, 2024 and sell it today you would earn a total of 14,830 from holding CREDITACCESS GRAMEEN LIMITED or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Royal Orchid Hotels
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Royal Orchid Hotels |
CREDITACCESS GRAMEEN and Royal Orchid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Royal Orchid
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Royal Orchid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, Royal Orchid 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 Royal Orchid will offset losses from the drop in Royal Orchid's long position.| CREDITACCESS GRAMEEN vs. Praxis Home Retail | CREDITACCESS GRAMEEN vs. Network18 Media Investments | CREDITACCESS GRAMEEN vs. Baazar Style Retail | CREDITACCESS GRAMEEN vs. Infomedia Press Limited |
| Royal Orchid vs. Consolidated Construction Consortium | Royal Orchid vs. Biofil Chemicals Pharmaceuticals | Royal Orchid vs. Refex Industries Limited | Royal Orchid vs. Kingfa Science Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |