Correlation Between Kaushalya Infrastructure and Oriental Hotels
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By analyzing existing cross correlation between Kaushalya Infrastructure Development and Oriental Hotels Limited, you can compare the effects of market volatilities on Kaushalya Infrastructure and Oriental 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 Kaushalya Infrastructure with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaushalya Infrastructure and Oriental Hotels.
Diversification Opportunities for Kaushalya Infrastructure and Oriental Hotels
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kaushalya and Oriental is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kaushalya Infrastructure Devel and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Kaushalya Infrastructure 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 Kaushalya Infrastructure Development are associated (or correlated) with Oriental Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Hotels has no effect on the direction of Kaushalya Infrastructure i.e., Kaushalya Infrastructure and Oriental Hotels go up and down completely randomly.
Pair Corralation between Kaushalya Infrastructure and Oriental Hotels
Assuming the 90 days trading horizon Kaushalya Infrastructure Development is expected to generate 0.69 times more return on investment than Oriental Hotels. However, Kaushalya Infrastructure Development is 1.46 times less risky than Oriental Hotels. It trades about -0.04 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about -0.06 per unit of risk. If you would invest 93,380 in Kaushalya Infrastructure Development on September 24, 2024 and sell it today you would lose (1,620) from holding Kaushalya Infrastructure Development or give up 1.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kaushalya Infrastructure Devel vs. Oriental Hotels Limited
Performance |
Timeline |
Kaushalya Infrastructure |
Oriental Hotels |
Kaushalya Infrastructure and Oriental Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kaushalya Infrastructure and Oriental Hotels
The main advantage of trading using opposite Kaushalya Infrastructure and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaushalya Infrastructure position performs unexpectedly, Oriental 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 Oriental Hotels will offset losses from the drop in Oriental Hotels' long position.Kaushalya Infrastructure vs. MRF Limited | Kaushalya Infrastructure vs. JSW Holdings Limited | Kaushalya Infrastructure vs. Maharashtra Scooters Limited | Kaushalya Infrastructure vs. Nalwa Sons Investments |
Oriental Hotels vs. Kaushalya Infrastructure Development | Oriental Hotels vs. Tarapur Transformers Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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