Correlation Between Kamat Hotels and Salzer Electronics
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By analyzing existing cross correlation between Kamat Hotels Limited and Salzer Electronics Limited, you can compare the effects of market volatilities on Kamat Hotels and Salzer 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 Salzer Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Salzer Electronics.
Diversification Opportunities for Kamat Hotels and Salzer Electronics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kamat and Salzer is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Salzer Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salzer 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 Salzer Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salzer Electronics has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Salzer Electronics go up and down completely randomly.
Pair Corralation between Kamat Hotels and Salzer Electronics
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 1.77 times less return on investment than Salzer Electronics. But when comparing it to its historical volatility, Kamat Hotels Limited is 1.09 times less risky than Salzer Electronics. It trades about 0.06 of its potential returns per unit of risk. Salzer Electronics Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 25,575 in Salzer Electronics Limited on August 28, 2024 and sell it today you would earn a total of 75,990 from holding Salzer Electronics Limited or generate 297.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Salzer Electronics Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| Salzer Electronics |
Kamat Hotels and Salzer Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Salzer Electronics
The main advantage of trading using opposite Kamat Hotels and Salzer Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Salzer 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 Salzer Electronics will offset losses from the drop in Salzer 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 |
| Salzer Electronics vs. The Investment Trust | Salzer Electronics vs. S P Apparels | Salzer Electronics vs. Nalwa Sons Investments | Salzer Electronics vs. Jindal Poly Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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