Correlation Between Max Financial and Kamat Hotels
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By analyzing existing cross correlation between Max Financial Services and Kamat Hotels Limited, you can compare the effects of market volatilities on Max Financial and Kamat 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 Max Financial with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and Kamat Hotels.
Diversification Opportunities for Max Financial and Kamat Hotels
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Max and Kamat is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited and Max Financial 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 Max Financial Services are associated (or correlated) with Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Max Financial i.e., Max Financial and Kamat Hotels go up and down completely randomly.
Pair Corralation between Max Financial and Kamat Hotels
Assuming the 90 days trading horizon Max Financial is expected to generate 1.99 times less return on investment than Kamat Hotels. But when comparing it to its historical volatility, Max Financial Services is 1.69 times less risky than Kamat Hotels. It trades about 0.06 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12,645 in Kamat Hotels Limited on November 9, 2024 and sell it today you would earn a total of 15,473 from holding Kamat Hotels Limited or generate 122.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Max Financial Services vs. Kamat Hotels Limited
Performance |
| Timeline |
| Max Financial Services |
| Kamat Hotels Limited |
Max Financial and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and Kamat Hotels
The main advantage of trading using opposite Max Financial and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, Kamat 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| Max Financial vs. Gangotri Textiles Limited | Max Financial vs. Hemisphere Properties India | Max Financial vs. Kingfa Science Technology | Max Financial vs. Agro Phos India |
| Kamat Hotels vs. Oriental Hotels Limited | Kamat Hotels vs. Chalet Hotels Limited | Kamat Hotels vs. Royal Orchid Hotels | Kamat Hotels vs. Viceroy Hotels 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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