Correlation Between Oriental Hotels and Agarwal Industrial
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By analyzing existing cross correlation between Oriental Hotels Limited and Agarwal Industrial, you can compare the effects of market volatilities on Oriental Hotels and Agarwal Industrial 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 Oriental Hotels with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Agarwal Industrial.
Diversification Opportunities for Oriental Hotels and Agarwal Industrial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and Agarwal is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and Oriental Hotels 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 Oriental Hotels Limited are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Agarwal Industrial go up and down completely randomly.
Pair Corralation between Oriental Hotels and Agarwal Industrial
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 0.97 times more return on investment than Agarwal Industrial. However, Oriental Hotels Limited is 1.03 times less risky than Agarwal Industrial. It trades about 0.08 of its potential returns per unit of risk. Agarwal Industrial is currently generating about 0.04 per unit of risk. If you would invest 12,102 in Oriental Hotels Limited on September 4, 2024 and sell it today you would earn a total of 6,447 from holding Oriental Hotels Limited or generate 53.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Agarwal Industrial
Performance |
| Timeline |
| Oriental Hotels |
| Agarwal Industrial |
Oriental Hotels and Agarwal Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Agarwal Industrial
The main advantage of trading using opposite Oriental Hotels and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.| Oriental Hotels vs. The Byke Hospitality | Oriental Hotels vs. LLOYDS METALS AND | Oriental Hotels vs. Metalyst Forgings Limited | Oriental Hotels vs. Sakar Healthcare 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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