Correlation Between MMTC and Kamat Hotels
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By analyzing existing cross correlation between MMTC Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on MMTC 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 MMTC with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMTC and Kamat Hotels.
Diversification Opportunities for MMTC and Kamat Hotels
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MMTC and Kamat is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MMTC Limited 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 MMTC 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 MMTC Limited 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 MMTC i.e., MMTC and Kamat Hotels go up and down completely randomly.
Pair Corralation between MMTC and Kamat Hotels
Assuming the 90 days trading horizon MMTC Limited is expected to generate 0.88 times more return on investment than Kamat Hotels. However, MMTC Limited is 1.14 times less risky than Kamat Hotels. It trades about 0.1 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about -0.05 per unit of risk. If you would invest 7,483 in MMTC Limited on August 29, 2024 and sell it today you would earn a total of 306.00 from holding MMTC Limited or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MMTC Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| MMTC Limited |
| Kamat Hotels Limited |
MMTC and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMTC and Kamat Hotels
The main advantage of trading using opposite MMTC and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMTC 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.| MMTC vs. The Orissa Minerals | MMTC vs. DSJ Keep Learning | MMTC vs. Kingfa Science Technology | MMTC vs. Rico Auto Industries |
| Kamat Hotels vs. MMTC Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries | Kamat Hotels vs. GACM Technologies 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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