Correlation Between Kamat Hotels and Lemon Tree
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By analyzing existing cross correlation between Kamat Hotels Limited and Lemon Tree Hotels, you can compare the effects of market volatilities on Kamat Hotels and Lemon Tree 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 Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Lemon Tree.
Diversification Opportunities for Kamat Hotels and Lemon Tree
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kamat and Lemon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree Hotels 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 Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Lemon Tree go up and down completely randomly.
Pair Corralation between Kamat Hotels and Lemon Tree
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 14.86 times less return on investment than Lemon Tree. In addition to that, Kamat Hotels is 1.52 times more volatile than Lemon Tree Hotels. It trades about 0.02 of its total potential returns per unit of risk. Lemon Tree Hotels is currently generating about 0.34 per unit of volatility. If you would invest 11,580 in Lemon Tree Hotels on August 31, 2024 and sell it today you would earn a total of 1,410 from holding Lemon Tree Hotels or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Lemon Tree Hotels
Performance |
| Timeline |
| Kamat Hotels Limited |
| Lemon Tree Hotels |
Kamat Hotels and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Lemon Tree
The main advantage of trading using opposite Kamat Hotels and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Lemon Tree 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 Lemon Tree will offset losses from the drop in Lemon Tree's 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 |
| Lemon Tree vs. Gujarat Fluorochemicals Limited | Lemon Tree vs. TECIL Chemicals and | Lemon Tree vs. Fineotex Chemical Limited | Lemon Tree vs. JGCHEMICALS 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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