Correlation Between Kamat Hotels and Indraprastha Medical
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By analyzing existing cross correlation between Kamat Hotels Limited and Indraprastha Medical, you can compare the effects of market volatilities on Kamat Hotels and Indraprastha Medical 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 Indraprastha Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Indraprastha Medical.
Diversification Opportunities for Kamat Hotels and Indraprastha Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kamat and Indraprastha is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Indraprastha Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indraprastha Medical 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 Indraprastha Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indraprastha Medical has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Indraprastha Medical go up and down completely randomly.
Pair Corralation between Kamat Hotels and Indraprastha Medical
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 0.92 times more return on investment than Indraprastha Medical. However, Kamat Hotels Limited is 1.09 times less risky than Indraprastha Medical. It trades about 0.58 of its potential returns per unit of risk. Indraprastha Medical is currently generating about 0.41 per unit of risk. If you would invest 19,066 in Kamat Hotels Limited on September 18, 2024 and sell it today you would earn a total of 5,421 from holding Kamat Hotels Limited or generate 28.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Indraprastha Medical
Performance |
| Timeline |
| Kamat Hotels Limited |
| Indraprastha Medical |
Kamat Hotels and Indraprastha Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Indraprastha Medical
The main advantage of trading using opposite Kamat Hotels and Indraprastha Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Indraprastha Medical 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 Indraprastha Medical will offset losses from the drop in Indraprastha Medical'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 |
| Indraprastha Medical vs. Blue Coast Hotels | Indraprastha Medical vs. Rainbow Childrens Medicare | Indraprastha Medical vs. Kamat Hotels Limited | Indraprastha Medical vs. MIRC 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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