Correlation Between Man Infraconstructio and Indian Hotels
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By analyzing existing cross correlation between Man Infraconstruction Limited and The Indian Hotels, you can compare the effects of market volatilities on Man Infraconstructio and Indian 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 Man Infraconstructio with a short position of Indian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and Indian Hotels.
Diversification Opportunities for Man Infraconstructio and Indian Hotels
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Man and Indian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and The Indian Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Hotels and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with Indian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Hotels has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and Indian Hotels go up and down completely randomly.
Pair Corralation between Man Infraconstructio and Indian Hotels
Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to under-perform the Indian Hotels. In addition to that, Man Infraconstructio is 1.19 times more volatile than The Indian Hotels. It trades about -0.38 of its total potential returns per unit of risk. The Indian Hotels is currently generating about -0.26 per unit of volatility. If you would invest 87,950 in The Indian Hotels on November 2, 2024 and sell it today you would lose (11,830) from holding The Indian Hotels or give up 13.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Man Infraconstruction Limited vs. The Indian Hotels
Performance |
| Timeline |
| Man Infraconstruction |
| Indian Hotels |
Man Infraconstructio and Indian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Man Infraconstructio and Indian Hotels
The main advantage of trading using opposite Man Infraconstructio and Indian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Infraconstructio position performs unexpectedly, Indian 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 Indian Hotels will offset losses from the drop in Indian Hotels' long position.| Man Infraconstructio vs. Hathway Cable Datacom | Man Infraconstructio vs. Aarey Drugs Pharmaceuticals | Man Infraconstructio vs. Modi Rubber Limited | Man Infraconstructio vs. One 97 Communications |
| Indian Hotels vs. Reliance Industrial Infrastructure | Indian Hotels vs. LLOYDS METALS AND | Indian Hotels vs. Indian Metals Ferro | Indian Hotels vs. Mask Investments 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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