Correlation Between Kamat Hotels and Hilton Metal
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By analyzing existing cross correlation between Kamat Hotels Limited and Hilton Metal Forging, you can compare the effects of market volatilities on Kamat Hotels and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Hilton Metal.
Diversification Opportunities for Kamat Hotels and Hilton Metal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kamat and Hilton is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Hilton Metal go up and down completely randomly.
Pair Corralation between Kamat Hotels and Hilton Metal
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 1.0 times more return on investment than Hilton Metal. However, Kamat Hotels is 1.0 times more volatile than Hilton Metal Forging. It trades about 0.07 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about 0.0 per unit of risk. If you would invest 12,645 in Kamat Hotels Limited on November 9, 2024 and sell it today you would earn a total of 15,473 from holding Kamat Hotels Limited or generate 122.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Hilton Metal Forging
Performance |
| Timeline |
| Kamat Hotels Limited |
| Hilton Metal Forging |
Kamat Hotels and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Hilton Metal
The main advantage of trading using opposite Kamat Hotels and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Kamat Hotels vs. Oriental Hotels Limited | Kamat Hotels vs. Chalet Hotels Limited | Kamat Hotels vs. Royal Orchid Hotels | Kamat Hotels vs. Viceroy Hotels Limited |
| Hilton Metal vs. Dhunseri Investments Limited | Hilton Metal vs. ROUTE MOBILE LIMITED | Hilton Metal vs. Cholamandalam Investment and | Hilton Metal vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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