Correlation Between Embassy Office and Kamat Hotels
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By analyzing existing cross correlation between Embassy Office Parks and Kamat Hotels Limited, you can compare the effects of market volatilities on Embassy Office 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 Embassy Office with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Kamat Hotels.
Diversification Opportunities for Embassy Office and Kamat Hotels
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Embassy and Kamat is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks 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 Embassy Office 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 Embassy Office Parks 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 Embassy Office i.e., Embassy Office and Kamat Hotels go up and down completely randomly.
Pair Corralation between Embassy Office and Kamat Hotels
Assuming the 90 days trading horizon Embassy Office is expected to generate 2.22 times less return on investment than Kamat Hotels. But when comparing it to its historical volatility, Embassy Office Parks is 2.43 times less risky than Kamat Hotels. It trades about 0.06 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 12,470 in Kamat Hotels Limited on August 27, 2024 and sell it today you would earn a total of 7,831 from holding Kamat Hotels Limited or generate 62.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
Embassy Office Parks vs. Kamat Hotels Limited
Performance |
| Timeline |
| Embassy Office Parks |
| Kamat Hotels Limited |
Embassy Office and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Office and Kamat Hotels
The main advantage of trading using opposite Embassy Office and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office 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.| Embassy Office vs. NMDC Limited | Embassy Office vs. Steel Authority of | Embassy Office vs. Gujarat Narmada Valley | Embassy Office vs. Gujarat Alkalies and |
| Kamat Hotels vs. MMTC Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries | Kamat Hotels vs. GACM Technologies 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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