Correlation Between Oriental Hotels and Neogen Chemicals
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By analyzing existing cross correlation between Oriental Hotels Limited and Neogen Chemicals Limited, you can compare the effects of market volatilities on Oriental Hotels and Neogen Chemicals 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 Neogen Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Neogen Chemicals.
Diversification Opportunities for Oriental Hotels and Neogen Chemicals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Neogen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Neogen Chemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen Chemicals 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 Neogen Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen Chemicals has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Neogen Chemicals go up and down completely randomly.
Pair Corralation between Oriental Hotels and Neogen Chemicals
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.16 times more return on investment than Neogen Chemicals. However, Oriental Hotels is 1.16 times more volatile than Neogen Chemicals Limited. It trades about 0.09 of its potential returns per unit of risk. Neogen Chemicals Limited is currently generating about 0.04 per unit of risk. If you would invest 8,541 in Oriental Hotels Limited on August 31, 2024 and sell it today you would earn a total of 9,714 from holding Oriental Hotels Limited or generate 113.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Neogen Chemicals Limited
Performance |
| Timeline |
| Oriental Hotels |
| Neogen Chemicals |
Oriental Hotels and Neogen Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Neogen Chemicals
The main advantage of trading using opposite Oriental Hotels and Neogen Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Neogen Chemicals 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 Neogen Chemicals will offset losses from the drop in Neogen Chemicals' long position.| Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. GTL Limited | Oriental Hotels vs. Indo Amines Limited | Oriental Hotels vs. HDFC Mutual Fund |
| Neogen Chemicals vs. VA Tech Wabag | Neogen Chemicals vs. Data Patterns Limited | Neogen Chemicals vs. PB Fintech Limited | Neogen Chemicals vs. AVALON TECHNOLOGIES LTD |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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