Correlation Between CREDITACCESS GRAMEEN and Samhi Hotels
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Samhi Hotels Limited, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN with a short position of Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Samhi Hotels.
Diversification Opportunities for CREDITACCESS GRAMEEN and Samhi Hotels
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDITACCESS and Samhi is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED 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 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 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 CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Samhi Hotels go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Samhi Hotels
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 1.84 times more return on investment than Samhi Hotels. However, CREDITACCESS GRAMEEN is 1.84 times more volatile than Samhi Hotels Limited. It trades about 0.17 of its potential returns per unit of risk. Samhi Hotels Limited is currently generating about -0.02 per unit of risk. If you would invest 82,615 in CREDITACCESS GRAMEEN LIMITED on October 24, 2024 and sell it today you would earn a total of 13,335 from holding CREDITACCESS GRAMEEN LIMITED or generate 16.14% 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. Samhi Hotels Limited
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Samhi Hotels Limited |
CREDITACCESS GRAMEEN and Samhi Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Samhi Hotels
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN 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.The idea behind CREDITACCESS GRAMEEN LIMITED and Samhi Hotels Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Samhi Hotels vs. Bigbloc Construction Limited | Samhi Hotels vs. IDBI Bank Limited | Samhi Hotels vs. Karur Vysya Bank | Samhi Hotels vs. CREDITACCESS GRAMEEN 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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