Correlation Between Lumia and Oriental Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lumia and Oriental Hotels Limited, you can compare the effects of market volatilities on Lumia 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 Lumia with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Oriental Hotels.
Diversification Opportunities for Lumia and Oriental Hotels
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lumia and Oriental is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Lumia 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 Lumia 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 Lumia i.e., Lumia and Oriental Hotels go up and down completely randomly.
Pair Corralation between Lumia and Oriental Hotels
Assuming the 90 days trading horizon Lumia is expected to under-perform the Oriental Hotels. In addition to that, Lumia is 2.14 times more volatile than Oriental Hotels Limited. It trades about -0.33 of its total potential returns per unit of risk. Oriental Hotels Limited is currently generating about -0.31 per unit of volatility. If you would invest 18,156 in Oriental Hotels Limited on November 2, 2024 and sell it today you would lose (3,176) from holding Oriental Hotels Limited or give up 17.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lumia vs. Oriental Hotels Limited
Performance |
| Timeline |
| Lumia |
| Oriental Hotels |
Lumia and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Oriental Hotels
The main advantage of trading using opposite Lumia and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia 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.The idea behind Lumia and Oriental Hotels Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Oriental Hotels vs. JSW Steel Limited | Oriental Hotels vs. Network18 Media Investments | Oriental Hotels vs. ILFS Investment Managers | Oriental Hotels vs. MSP Steel Power |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |