Correlation Between Kamat Hotels and Ausom Enterprise
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By analyzing existing cross correlation between Kamat Hotels Limited and Ausom Enterprise Limited, you can compare the effects of market volatilities on Kamat Hotels and Ausom Enterprise 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 Kamat Hotels with a short position of Ausom Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Ausom Enterprise.
Diversification Opportunities for Kamat Hotels and Ausom Enterprise
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamat and Ausom is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Ausom Enterprise Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ausom Enterprise and Kamat Hotels 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 Kamat Hotels Limited are associated (or correlated) with Ausom Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ausom Enterprise has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Ausom Enterprise go up and down completely randomly.
Pair Corralation between Kamat Hotels and Ausom Enterprise
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 4.72 times less return on investment than Ausom Enterprise. But when comparing it to its historical volatility, Kamat Hotels Limited is 1.48 times less risky than Ausom Enterprise. It trades about 0.02 of its potential returns per unit of risk. Ausom Enterprise Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,512 in Ausom Enterprise Limited on August 31, 2024 and sell it today you would earn a total of 4,165 from holding Ausom Enterprise Limited or generate 63.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Ausom Enterprise Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| Ausom Enterprise |
Kamat Hotels and Ausom Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Ausom Enterprise
The main advantage of trading using opposite Kamat Hotels and Ausom Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Ausom Enterprise 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 Ausom Enterprise will offset losses from the drop in Ausom Enterprise's long position.| Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. GTL Limited | Kamat Hotels vs. Indo Amines Limited | Kamat Hotels vs. HDFC Mutual Fund |
| Ausom Enterprise vs. Uniinfo Telecom Services | Ausom Enterprise vs. Oriental Hotels Limited | Ausom Enterprise vs. EIH Associated Hotels | Ausom Enterprise vs. Taj GVK 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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