Correlation Between Jindal Poly and Kamat Hotels
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By analyzing existing cross correlation between Jindal Poly Investment and Kamat Hotels Limited, you can compare the effects of market volatilities on Jindal Poly 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 Jindal Poly with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Poly and Kamat Hotels.
Diversification Opportunities for Jindal Poly and Kamat Hotels
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jindal and Kamat is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Poly Investment 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 Jindal Poly 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 Jindal Poly Investment 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 Jindal Poly i.e., Jindal Poly and Kamat Hotels go up and down completely randomly.
Pair Corralation between Jindal Poly and Kamat Hotels
Assuming the 90 days trading horizon Jindal Poly Investment is expected to generate 1.11 times more return on investment than Kamat Hotels. However, Jindal Poly is 1.11 times more volatile than Kamat Hotels Limited. It trades about 0.06 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.06 per unit of risk. If you would invest 47,890 in Jindal Poly Investment on September 3, 2024 and sell it today you would earn a total of 45,465 from holding Jindal Poly Investment or generate 94.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jindal Poly Investment vs. Kamat Hotels Limited
Performance |
| Timeline |
| Jindal Poly Investment |
| Kamat Hotels Limited |
Jindal Poly and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Poly and Kamat Hotels
The main advantage of trading using opposite Jindal Poly and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Poly 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.| Jindal Poly vs. Syrma SGS Technology | Jindal Poly vs. Home First Finance | Jindal Poly vs. Sonata Software Limited | Jindal Poly vs. Embassy Office Parks |
| Kamat Hotels vs. LLOYDS METALS AND | Kamat Hotels vs. Transport of | Kamat Hotels vs. Shyam Metalics and | Kamat Hotels vs. Sonata Software 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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