Correlation Between Oil Natural and Oriental Hotels
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By analyzing existing cross correlation between Oil Natural Gas and Oriental Hotels Limited, you can compare the effects of market volatilities on Oil Natural 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 Oil Natural with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and Oriental Hotels.
Diversification Opportunities for Oil Natural and Oriental Hotels
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oil and Oriental is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels 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 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 Oil Natural i.e., Oil Natural and Oriental Hotels go up and down completely randomly.
Pair Corralation between Oil Natural and Oriental Hotels
Assuming the 90 days trading horizon Oil Natural Gas is expected to under-perform the Oriental Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Oil Natural Gas is 1.89 times less risky than Oriental Hotels. The stock trades about -0.02 of its potential returns per unit of risk. The Oriental Hotels Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 16,393 in Oriental Hotels Limited on August 29, 2024 and sell it today you would earn a total of 2,299 from holding Oriental Hotels Limited or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oil Natural Gas vs. Oriental Hotels Limited
Performance |
| Timeline |
| Oil Natural Gas |
| Oriental Hotels |
Oil Natural and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and Oriental Hotels
The main advantage of trading using opposite Oil Natural and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural 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.| Oil Natural vs. Digjam Limited | Oil Natural vs. Gujarat Raffia Industries | Oil Natural vs. Avonmore Capital Management | Oil Natural vs. JSW Holdings Limited |
| Oriental Hotels vs. MMTC Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries | Oriental 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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