Correlation Between Lemon Tree and Oriental Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lemon Tree Hotels and Oriental Hotels Limited, you can compare the effects of market volatilities on Lemon Tree 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 Lemon Tree with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Oriental Hotels.
Diversification Opportunities for Lemon Tree and Oriental Hotels
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lemon and Oriental is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Lemon Tree 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 Lemon Tree Hotels 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 Lemon Tree i.e., Lemon Tree and Oriental Hotels go up and down completely randomly.
Pair Corralation between Lemon Tree and Oriental Hotels
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to under-perform the Oriental Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Lemon Tree Hotels is 1.42 times less risky than Oriental Hotels. The stock trades about -0.04 of its potential returns per unit of risk. The Oriental Hotels Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,801 in Oriental Hotels Limited on August 25, 2024 and sell it today you would earn a total of 4,979 from holding Oriental Hotels Limited or generate 36.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Oriental Hotels Limited
Performance |
| Timeline |
| Lemon Tree Hotels |
| Oriental Hotels |
Lemon Tree and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Oriental Hotels
The main advantage of trading using opposite Lemon Tree and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree 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.| Lemon Tree vs. Reliance Industries Limited | Lemon Tree vs. Indian Oil | Lemon Tree vs. HDFC Bank Limited | Lemon Tree vs. Divis Laboratories Limited |
| Oriental Hotels vs. Reliance Industries Limited | Oriental Hotels vs. Indian Oil | Oriental Hotels vs. HDFC Bank Limited | Oriental Hotels vs. Divis Laboratories 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |