Correlation Between Marshall Machines and Oriental Hotels
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By analyzing existing cross correlation between Marshall Machines Limited and Oriental Hotels Limited, you can compare the effects of market volatilities on Marshall Machines 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 Marshall Machines with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marshall Machines and Oriental Hotels.
Diversification Opportunities for Marshall Machines and Oriental Hotels
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marshall and Oriental is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Marshall Machines Limited and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Marshall Machines 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 Marshall Machines Limited 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 Marshall Machines i.e., Marshall Machines and Oriental Hotels go up and down completely randomly.
Pair Corralation between Marshall Machines and Oriental Hotels
Assuming the 90 days trading horizon Marshall Machines is expected to generate 12.81 times less return on investment than Oriental Hotels. In addition to that, Marshall Machines is 1.28 times more volatile than Oriental Hotels Limited. It trades about 0.0 of its total potential returns per unit of risk. Oriental Hotels Limited is currently generating about 0.08 per unit of volatility. If you would invest 6,980 in Oriental Hotels Limited on October 13, 2024 and sell it today you would earn a total of 9,911 from holding Oriental Hotels Limited or generate 141.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.38% |
| Values | Daily Returns |
Marshall Machines Limited vs. Oriental Hotels Limited
Performance |
| Timeline |
| Marshall Machines |
| Oriental Hotels |
Marshall Machines and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marshall Machines and Oriental Hotels
The main advantage of trading using opposite Marshall Machines and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marshall Machines 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.| Marshall Machines vs. Indian Metals Ferro | Marshall Machines vs. Tube Investments of | Marshall Machines vs. Network18 Media Investments | Marshall Machines vs. Pilani Investment and |
| Oriental Hotels vs. WESTLIFE FOODWORLD LIMITED | Oriental Hotels vs. Vinati Organics Limited | Oriental Hotels vs. Megastar Foods Limited | Oriental Hotels vs. 21st Century Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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