Correlation Between Oil Natural and Kamat Hotels
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By analyzing existing cross correlation between Oil Natural Gas and Kamat Hotels Limited, you can compare the effects of market volatilities on Oil Natural 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 Oil Natural with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and Kamat Hotels.
Diversification Opportunities for Oil Natural and Kamat Hotels
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oil and Kamat is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas 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 Oil Natural 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 Oil Natural Gas 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 Oil Natural i.e., Oil Natural and Kamat Hotels go up and down completely randomly.
Pair Corralation between Oil Natural and Kamat Hotels
Assuming the 90 days trading horizon Oil Natural is expected to generate 5.25 times less return on investment than Kamat Hotels. But when comparing it to its historical volatility, Oil Natural Gas is 1.63 times less risky than Kamat Hotels. It trades about 0.08 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 21,207 in Kamat Hotels Limited on September 12, 2024 and sell it today you would earn a total of 3,168 from holding Kamat Hotels Limited or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oil Natural Gas vs. Kamat Hotels Limited
Performance |
| Timeline |
| Oil Natural Gas |
| Kamat Hotels Limited |
Oil Natural and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and Kamat Hotels
The main advantage of trading using opposite Oil Natural and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural 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.| Oil Natural vs. India Glycols Limited | Oil Natural vs. Indo Borax Chemicals | Oil Natural vs. Kingfa Science Technology | Oil Natural vs. Alkali Metals Limited |
| Kamat Hotels vs. Hemisphere Properties India | Kamat Hotels vs. Indo Borax Chemicals | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Alkali Metals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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