Correlation Between Kamat Hotels and Byke Hospitality
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By analyzing existing cross correlation between Kamat Hotels Limited and The Byke Hospitality, you can compare the effects of market volatilities on Kamat Hotels and Byke Hospitality 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 Byke Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Byke Hospitality.
Diversification Opportunities for Kamat Hotels and Byke Hospitality
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kamat and Byke is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and The Byke Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byke Hospitality 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 Byke Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byke Hospitality has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Byke Hospitality go up and down completely randomly.
Pair Corralation between Kamat Hotels and Byke Hospitality
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 11.76 times less return on investment than Byke Hospitality. But when comparing it to its historical volatility, Kamat Hotels Limited is 1.17 times less risky than Byke Hospitality. It trades about 0.02 of its potential returns per unit of risk. The Byke Hospitality is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,708 in The Byke Hospitality on August 31, 2024 and sell it today you would earn a total of 595.00 from holding The Byke Hospitality or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. The Byke Hospitality
Performance |
| Timeline |
| Kamat Hotels Limited |
| Byke Hospitality |
Kamat Hotels and Byke Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Byke Hospitality
The main advantage of trading using opposite Kamat Hotels and Byke Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Byke Hospitality 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 Byke Hospitality will offset losses from the drop in Byke Hospitality'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 |
| Byke Hospitality vs. Kingfa Science Technology | Byke Hospitality vs. GTL Limited | Byke Hospitality vs. Indo Amines Limited | Byke Hospitality vs. HDFC Mutual Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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