Correlation Between Kamat Hotels and GTL
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By analyzing existing cross correlation between Kamat Hotels Limited and GTL Limited, you can compare the effects of market volatilities on Kamat Hotels and GTL 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 GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and GTL.
Diversification Opportunities for Kamat Hotels and GTL
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kamat and GTL is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL Limited 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 GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and GTL go up and down completely randomly.
Pair Corralation between Kamat Hotels and GTL
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 0.9 times more return on investment than GTL. However, Kamat Hotels Limited is 1.11 times less risky than GTL. It trades about -0.01 of its potential returns per unit of risk. GTL Limited is currently generating about -0.01 per unit of risk. If you would invest 21,720 in Kamat Hotels Limited on September 2, 2024 and sell it today you would lose (286.00) from holding Kamat Hotels Limited or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. GTL Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| GTL Limited |
Kamat Hotels and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and GTL
The main advantage of trading using opposite Kamat Hotels and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| Kamat Hotels vs. Indian Railway Finance | Kamat Hotels vs. Cholamandalam Financial Holdings | Kamat Hotels vs. Reliance Industries Limited | Kamat Hotels vs. Tata Consultancy Services |
| GTL vs. One 97 Communications | GTL vs. Paramount Communications Limited | GTL vs. OnMobile Global Limited | GTL vs. Elin Electronics 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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