Correlation Between Oriental Hotels and Maharashtra Scooters
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By analyzing existing cross correlation between Oriental Hotels Limited and Maharashtra Scooters Limited, you can compare the effects of market volatilities on Oriental Hotels and Maharashtra Scooters 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 Maharashtra Scooters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Maharashtra Scooters.
Diversification Opportunities for Oriental Hotels and Maharashtra Scooters
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and Maharashtra is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Maharashtra Scooters Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maharashtra Scooters 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 Maharashtra Scooters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maharashtra Scooters has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Maharashtra Scooters go up and down completely randomly.
Pair Corralation between Oriental Hotels and Maharashtra Scooters
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.5 times more return on investment than Maharashtra Scooters. However, Oriental Hotels is 1.5 times more volatile than Maharashtra Scooters Limited. It trades about 0.08 of its potential returns per unit of risk. Maharashtra Scooters Limited is currently generating about 0.1 per unit of risk. If you would invest 6,807 in Oriental Hotels Limited on October 16, 2024 and sell it today you would earn a total of 10,093 from holding Oriental Hotels Limited or generate 148.27% 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. Maharashtra Scooters Limited
Performance |
| Timeline |
| Oriental Hotels |
| Maharashtra Scooters |
Oriental Hotels and Maharashtra Scooters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Maharashtra Scooters
The main advantage of trading using opposite Oriental Hotels and Maharashtra Scooters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Maharashtra Scooters 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 Maharashtra Scooters will offset losses from the drop in Maharashtra Scooters' long position.| Oriental Hotels vs. Action Construction Equipment | Oriental Hotels vs. Bigbloc Construction Limited | Oriental Hotels vs. Univa Foods Limited | Oriental Hotels vs. Mrs Bectors Food |
| Maharashtra Scooters vs. Juniper Hotels | Maharashtra Scooters vs. Landmark Cars Limited | Maharashtra Scooters vs. Apollo Sindoori Hotels | Maharashtra Scooters vs. Oriental Hotels 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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