Correlation Between EMBASSY OFFICE and SINCLAIRS HOTELS
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By analyzing existing cross correlation between EMBASSY OFFICE PARKS and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on EMBASSY OFFICE and SINCLAIRS 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 SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBASSY OFFICE and SINCLAIRS HOTELS.
Diversification Opportunities for EMBASSY OFFICE and SINCLAIRS HOTELS
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMBASSY and SINCLAIRS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding EMBASSY OFFICE PARKS and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of EMBASSY OFFICE i.e., EMBASSY OFFICE and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between EMBASSY OFFICE and SINCLAIRS HOTELS
Assuming the 90 days trading horizon EMBASSY OFFICE PARKS is expected to under-perform the SINCLAIRS HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, EMBASSY OFFICE PARKS is 1.85 times less risky than SINCLAIRS HOTELS. The stock trades about -0.19 of its potential returns per unit of risk. The SINCLAIRS HOTELS ORD is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,030 in SINCLAIRS HOTELS ORD on August 29, 2024 and sell it today you would earn a total of 386.00 from holding SINCLAIRS HOTELS ORD or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EMBASSY OFFICE PARKS vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| EMBASSY OFFICE PARKS |
| SINCLAIRS HOTELS ORD |
EMBASSY OFFICE and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBASSY OFFICE and SINCLAIRS HOTELS
The main advantage of trading using opposite EMBASSY OFFICE and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBASSY OFFICE position performs unexpectedly, SINCLAIRS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.| EMBASSY OFFICE vs. NMDC Limited | EMBASSY OFFICE vs. Embassy Office Parks | EMBASSY OFFICE vs. Gujarat Alkalies and | EMBASSY OFFICE vs. Indian Metals Ferro |
| SINCLAIRS HOTELS vs. The Indian Hotels | SINCLAIRS HOTELS vs. Chalet Hotels Limited | SINCLAIRS HOTELS vs. Lemon Tree Hotels | SINCLAIRS HOTELS vs. Juniper Hotels |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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