Correlation Between Oriental Hotels and GAIL
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By analyzing existing cross correlation between Oriental Hotels Limited and GAIL Limited, you can compare the effects of market volatilities on Oriental Hotels and GAIL 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 GAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and GAIL.
Diversification Opportunities for Oriental Hotels and GAIL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and GAIL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and GAIL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAIL Limited 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 GAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAIL Limited has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and GAIL go up and down completely randomly.
Pair Corralation between Oriental Hotels and GAIL
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.03 times more return on investment than GAIL. However, Oriental Hotels is 1.03 times more volatile than GAIL Limited. It trades about 0.01 of its potential returns per unit of risk. GAIL Limited is currently generating about 0.0 per unit of risk. If you would invest 18,312 in Oriental Hotels Limited on September 2, 2024 and sell it today you would lose (57.00) from holding Oriental Hotels Limited or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Hotels Limited vs. GAIL Limited
Performance |
| Timeline |
| Oriental Hotels |
| GAIL Limited |
Oriental Hotels and GAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and GAIL
The main advantage of trading using opposite Oriental Hotels and GAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, GAIL 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 GAIL will offset losses from the drop in GAIL's long position.| Oriental Hotels vs. Indian Railway Finance | Oriental Hotels vs. Cholamandalam Financial Holdings | Oriental Hotels vs. Reliance Industries Limited | Oriental Hotels vs. Tata Consultancy Services |
| GAIL vs. Oriental Hotels Limited | GAIL vs. V Mart Retail Limited | GAIL vs. Lemon Tree Hotels | GAIL vs. Sonata Software 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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