Correlation Between Kamat Hotels and Sanginita Chemicals
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By analyzing existing cross correlation between Kamat Hotels Limited and Sanginita Chemicals Limited, you can compare the effects of market volatilities on Kamat Hotels and Sanginita Chemicals 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 Sanginita Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Sanginita Chemicals.
Diversification Opportunities for Kamat Hotels and Sanginita Chemicals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kamat and Sanginita is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Sanginita Chemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanginita Chemicals 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 Sanginita Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanginita Chemicals has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Sanginita Chemicals go up and down completely randomly.
Pair Corralation between Kamat Hotels and Sanginita Chemicals
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 1.43 times more return on investment than Sanginita Chemicals. However, Kamat Hotels is 1.43 times more volatile than Sanginita Chemicals Limited. It trades about 0.29 of its potential returns per unit of risk. Sanginita Chemicals Limited is currently generating about 0.11 per unit of risk. If you would invest 20,614 in Kamat Hotels Limited on September 13, 2024 and sell it today you would earn a total of 3,310 from holding Kamat Hotels Limited or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Sanginita Chemicals Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| Sanginita Chemicals |
Kamat Hotels and Sanginita Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Sanginita Chemicals
The main advantage of trading using opposite Kamat Hotels and Sanginita Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Sanginita Chemicals 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 Sanginita Chemicals will offset losses from the drop in Sanginita Chemicals' 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 |
| Sanginita Chemicals vs. NMDC Limited | Sanginita Chemicals vs. Steel Authority of | Sanginita Chemicals vs. Embassy Office Parks | Sanginita Chemicals vs. Gujarat Narmada Valley |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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