Correlation Between Kamat Hotels and Bombay Burmah
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By analyzing existing cross correlation between Kamat Hotels Limited and Bombay Burmah Trading, you can compare the effects of market volatilities on Kamat Hotels and Bombay Burmah 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 Bombay Burmah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Bombay Burmah.
Diversification Opportunities for Kamat Hotels and Bombay Burmah
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kamat and Bombay is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Bombay Burmah Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bombay Burmah Trading 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 Bombay Burmah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bombay Burmah Trading has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Bombay Burmah go up and down completely randomly.
Pair Corralation between Kamat Hotels and Bombay Burmah
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 1.39 times more return on investment than Bombay Burmah. However, Kamat Hotels is 1.39 times more volatile than Bombay Burmah Trading. It trades about -0.13 of its potential returns per unit of risk. Bombay Burmah Trading is currently generating about -0.3 per unit of risk. If you would invest 23,020 in Kamat Hotels Limited on October 19, 2024 and sell it today you would lose (2,089) from holding Kamat Hotels Limited or give up 9.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Bombay Burmah Trading
Performance |
| Timeline |
| Kamat Hotels Limited |
| Bombay Burmah Trading |
Kamat Hotels and Bombay Burmah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Bombay Burmah
The main advantage of trading using opposite Kamat Hotels and Bombay Burmah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Bombay Burmah 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 Bombay Burmah will offset losses from the drop in Bombay Burmah's long position.| Kamat Hotels vs. Next Mediaworks Limited | Kamat Hotels vs. Popular Vehicles and | Kamat Hotels vs. Nalwa Sons Investments | Kamat Hotels vs. DJ Mediaprint Logistics |
| Bombay Burmah vs. MSP Steel Power | Bombay Burmah vs. Electrosteel Castings Limited | Bombay Burmah vs. NMDC Steel Limited | Bombay Burmah vs. Kamat Hotels 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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