Correlation Between Kamat Hotels and V2 Retail
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By analyzing existing cross correlation between Kamat Hotels Limited and V2 Retail Limited, you can compare the effects of market volatilities on Kamat Hotels and V2 Retail 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and V2 Retail.
Diversification Opportunities for Kamat Hotels and V2 Retail
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kamat and V2RETAIL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail Limited 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and V2 Retail go up and down completely randomly.
Pair Corralation between Kamat Hotels and V2 Retail
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 8.65 times less return on investment than V2 Retail. But when comparing it to its historical volatility, Kamat Hotels Limited is 1.03 times less risky than V2 Retail. It trades about 0.03 of its potential returns per unit of risk. V2 Retail Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 77,235 in V2 Retail Limited on September 26, 2024 and sell it today you would earn a total of 83,105 from holding V2 Retail Limited or generate 107.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. V2 Retail Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| V2 Retail Limited |
Kamat Hotels and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and V2 Retail
The main advantage of trading using opposite Kamat Hotels and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, V2 Retail 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 V2 Retail will offset losses from the drop in V2 Retail's long position.| Kamat Hotels vs. Kaushalya Infrastructure Development | Kamat Hotels vs. Tarapur Transformers Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries |
| V2 Retail vs. Reliance Industries Limited | V2 Retail vs. State Bank of | V2 Retail vs. HDFC Bank Limited | V2 Retail vs. Oil Natural Gas |
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 Stocks Directory module to find actively traded stocks across global markets.
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