Correlation Between Oriental Hotels and Agro Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Oriental Hotels Limited and Agro Tech Foods, you can compare the effects of market volatilities on Oriental Hotels and Agro Tech 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 Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Agro Tech.
Diversification Opportunities for Oriental Hotels and Agro Tech
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oriental and Agro is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods 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 Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Agro Tech go up and down completely randomly.
Pair Corralation between Oriental Hotels and Agro Tech
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.08 times more return on investment than Agro Tech. However, Oriental Hotels is 1.08 times more volatile than Agro Tech Foods. It trades about 0.08 of its potential returns per unit of risk. Agro Tech Foods is currently generating about 0.01 per unit of risk. If you would invest 6,980 in Oriental Hotels Limited on October 13, 2024 and sell it today you would earn a total of 9,911 from holding Oriental Hotels Limited or generate 141.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Agro Tech Foods
Performance |
| Timeline |
| Oriental Hotels |
| Agro Tech Foods |
Oriental Hotels and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Agro Tech
The main advantage of trading using opposite Oriental Hotels and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's long position.| Oriental Hotels vs. WESTLIFE FOODWORLD LIMITED | Oriental Hotels vs. Vinati Organics Limited | Oriental Hotels vs. Megastar Foods Limited | Oriental Hotels vs. 21st Century Management |
| Agro Tech vs. Som Distilleries Breweries | Agro Tech vs. Oriental Hotels Limited | Agro Tech vs. Samhi Hotels Limited | Agro Tech vs. Salzer Electronics 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |