Correlation Between Kamat Hotels and Indo Amines
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By analyzing existing cross correlation between Kamat Hotels Limited and Indo Amines Limited, you can compare the effects of market volatilities on Kamat Hotels and Indo Amines 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 Indo Amines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Indo Amines.
Diversification Opportunities for Kamat Hotels and Indo Amines
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kamat and Indo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Indo Amines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Amines 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 Indo Amines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Amines Limited has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Indo Amines go up and down completely randomly.
Pair Corralation between Kamat Hotels and Indo Amines
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 3.83 times less return on investment than Indo Amines. But when comparing it to its historical volatility, Kamat Hotels Limited is 1.37 times less risky than Indo Amines. It trades about 0.02 of its potential returns per unit of risk. Indo Amines Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,858 in Indo Amines Limited on August 31, 2024 and sell it today you would earn a total of 5,605 from holding Indo Amines Limited or generate 47.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Indo Amines Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| Indo Amines Limited |
Kamat Hotels and Indo Amines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Indo Amines
The main advantage of trading using opposite Kamat Hotels and Indo Amines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Indo Amines 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 Indo Amines will offset losses from the drop in Indo Amines' 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 |
| Indo Amines vs. LT Technology Services | Indo Amines vs. Cambridge Technology Enterprises | Indo Amines vs. BF Utilities Limited | Indo Amines vs. FCS Software Solutions |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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