Correlation Between Kamat Hotels and India Glycols
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By analyzing existing cross correlation between Kamat Hotels Limited and India Glycols Limited, you can compare the effects of market volatilities on Kamat Hotels and India Glycols 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 India Glycols. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and India Glycols.
Diversification Opportunities for Kamat Hotels and India Glycols
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamat and India is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and India Glycols Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Glycols 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 India Glycols. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Glycols Limited has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and India Glycols go up and down completely randomly.
Pair Corralation between Kamat Hotels and India Glycols
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to under-perform the India Glycols. But the stock apears to be less risky and, when comparing its historical volatility, Kamat Hotels Limited is 1.14 times less risky than India Glycols. The stock trades about -0.05 of its potential returns per unit of risk. The India Glycols Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 120,155 in India Glycols Limited on August 29, 2024 and sell it today you would lose (510.00) from holding India Glycols Limited or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. India Glycols Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| India Glycols Limited |
Kamat Hotels and India Glycols Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and India Glycols
The main advantage of trading using opposite Kamat Hotels and India Glycols positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, India Glycols 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 India Glycols will offset losses from the drop in India Glycols' long position.| Kamat Hotels vs. Hemisphere Properties India | Kamat Hotels vs. India Glycols Limited | Kamat Hotels vs. Indo Borax Chemicals | Kamat Hotels vs. Kingfa Science Technology |
| India Glycols vs. Advani Hotels Resorts | India Glycols vs. Dhunseri Investments Limited | India Glycols vs. Lemon Tree Hotels | India Glycols 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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