Correlation Between Oriental Hotels and Dow Jones
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By analyzing existing cross correlation between Oriental Hotels Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Oriental Hotels and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Dow Jones.
Diversification Opportunities for Oriental Hotels and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Dow Jones go up and down completely randomly.
Pair Corralation between Oriental Hotels and Dow Jones
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 3.78 times more return on investment than Dow Jones. However, Oriental Hotels is 3.78 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 8,115 in Oriental Hotels Limited on August 25, 2024 and sell it today you would earn a total of 10,665 from holding Oriental Hotels Limited or generate 131.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Oriental Hotels and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Oriental Hotels Limited
Pair trading matchups for Oriental Hotels
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Oriental Hotels and Dow Jones
The main advantage of trading using opposite Oriental Hotels and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Oriental Hotels vs. MMTC Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries | Oriental Hotels vs. GACM Technologies Limited |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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