Correlation Between Kamat Hotels and MIRC Electronics
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By analyzing existing cross correlation between Kamat Hotels Limited and MIRC Electronics Limited, you can compare the effects of market volatilities on Kamat Hotels and MIRC Electronics 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 MIRC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and MIRC Electronics.
Diversification Opportunities for Kamat Hotels and MIRC Electronics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kamat and MIRC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and MIRC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRC Electronics 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 MIRC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRC Electronics has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and MIRC Electronics go up and down completely randomly.
Pair Corralation between Kamat Hotels and MIRC Electronics
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to under-perform the MIRC Electronics. In addition to that, Kamat Hotels is 1.03 times more volatile than MIRC Electronics Limited. It trades about -0.1 of its total potential returns per unit of risk. MIRC Electronics Limited is currently generating about -0.04 per unit of volatility. If you would invest 2,046 in MIRC Electronics Limited on August 28, 2024 and sell it today you would lose (53.00) from holding MIRC Electronics Limited or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. MIRC Electronics Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| MIRC Electronics |
Kamat Hotels and MIRC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and MIRC Electronics
The main advantage of trading using opposite Kamat Hotels and MIRC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, MIRC Electronics 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 MIRC Electronics will offset losses from the drop in MIRC Electronics' long position.| Kamat Hotels vs. MMTC Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries | Kamat Hotels vs. GACM Technologies Limited |
| MIRC Electronics vs. Kingfa Science Technology | MIRC Electronics vs. Rico Auto Industries | MIRC Electronics vs. GACM Technologies Limited | MIRC Electronics vs. COSMO FIRST 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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