Correlation Between Oriental Hotels and Mahindra Logistics
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By analyzing existing cross correlation between Oriental Hotels Limited and Mahindra Logistics Limited, you can compare the effects of market volatilities on Oriental Hotels and Mahindra Logistics 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 Mahindra Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Mahindra Logistics.
Diversification Opportunities for Oriental Hotels and Mahindra Logistics
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Mahindra is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Mahindra Logistics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahindra Logistics 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 Mahindra Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahindra Logistics has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Mahindra Logistics go up and down completely randomly.
Pair Corralation between Oriental Hotels and Mahindra Logistics
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.05 times more return on investment than Mahindra Logistics. However, Oriental Hotels is 1.05 times more volatile than Mahindra Logistics Limited. It trades about -0.17 of its potential returns per unit of risk. Mahindra Logistics Limited is currently generating about -0.47 per unit of risk. If you would invest 15,830 in Oriental Hotels Limited on November 27, 2024 and sell it today you would lose (1,598) from holding Oriental Hotels Limited or give up 10.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Mahindra Logistics Limited
Performance |
| Timeline |
| Oriental Hotels |
| Mahindra Logistics |
Oriental Hotels and Mahindra Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Mahindra Logistics
The main advantage of trading using opposite Oriental Hotels and Mahindra Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Mahindra Logistics 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 Mahindra Logistics will offset losses from the drop in Mahindra Logistics' long position.| Oriental Hotels vs. Alkali Metals Limited | Oriental Hotels vs. Rajnandini Metal Limited | Oriental Hotels vs. Shemaroo Entertainment Limited | Oriental Hotels vs. Ratnamani Metals Tubes |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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