Correlation Between Kamat Hotels and Viceroy Hotels
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By analyzing existing cross correlation between Kamat Hotels Limited and Viceroy Hotels Limited, you can compare the effects of market volatilities on Kamat Hotels and Viceroy Hotels 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 Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Viceroy Hotels.
Diversification Opportunities for Kamat Hotels and Viceroy Hotels
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamat and Viceroy is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels Limited and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy 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 Viceroy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viceroy Hotels has no effect on the direction of Kamat Hotels i.e., Kamat Hotels and Viceroy Hotels go up and down completely randomly.
Pair Corralation between Kamat Hotels and Viceroy Hotels
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 1.54 times more return on investment than Viceroy Hotels. However, Kamat Hotels is 1.54 times more volatile than Viceroy Hotels Limited. It trades about -0.05 of its potential returns per unit of risk. Viceroy Hotels Limited is currently generating about -0.11 per unit of risk. If you would invest 22,961 in Kamat Hotels Limited on November 1, 2024 and sell it today you would lose (1,098) from holding Kamat Hotels Limited or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Viceroy Hotels Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| Viceroy Hotels |
Kamat Hotels and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Viceroy Hotels
The main advantage of trading using opposite Kamat Hotels and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels position performs unexpectedly, Viceroy Hotels 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 Viceroy Hotels will offset losses from the drop in Viceroy Hotels' long position.| Kamat Hotels vs. State Bank of | Kamat Hotels vs. Life Insurance | Kamat Hotels vs. HDFC Bank Limited | Kamat Hotels vs. ICICI Bank Limited |
| Viceroy Hotels vs. State Bank of | Viceroy Hotels vs. Life Insurance | Viceroy Hotels vs. HDFC Bank Limited | Viceroy Hotels vs. ICICI Bank 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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