Correlation Between N B and Royal Orchid
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By analyzing existing cross correlation between N B I and Royal Orchid Hotels, you can compare the effects of market volatilities on N B and Royal Orchid 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 N B with a short position of Royal Orchid. Check out your portfolio center. Please also check ongoing floating volatility patterns of N B and Royal Orchid.
Diversification Opportunities for N B and Royal Orchid
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NBIFIN and Royal is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding N B I and Royal Orchid Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Orchid Hotels and N B 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 N B I are associated (or correlated) with Royal Orchid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Orchid Hotels has no effect on the direction of N B i.e., N B and Royal Orchid go up and down completely randomly.
Pair Corralation between N B and Royal Orchid
Assuming the 90 days trading horizon N B I is expected to generate 0.78 times more return on investment than Royal Orchid. However, N B I is 1.28 times less risky than Royal Orchid. It trades about 0.07 of its potential returns per unit of risk. Royal Orchid Hotels is currently generating about 0.03 per unit of risk. If you would invest 170,049 in N B I on September 3, 2024 and sell it today you would earn a total of 158,851 from holding N B I or generate 93.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
N B I vs. Royal Orchid Hotels
Performance |
| Timeline |
| N B I |
| Royal Orchid Hotels |
N B and Royal Orchid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N B and Royal Orchid
The main advantage of trading using opposite N B and Royal Orchid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N B position performs unexpectedly, Royal Orchid 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 Royal Orchid will offset losses from the drop in Royal Orchid's long position.| N B vs. Royal Orchid Hotels | N B vs. Juniper Hotels | N B vs. Hindcon Chemicals Limited | N B vs. Sanginita Chemicals Limited |
| Royal Orchid vs. UTI Asset Management | Royal Orchid vs. Nalwa Sons Investments | Royal Orchid vs. AUTHUM INVESTMENT INFRASTRUCTU | Royal Orchid vs. Bajaj Holdings Investment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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