Correlation Between Oriental Hotels and Oracle Financial
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By analyzing existing cross correlation between Oriental Hotels Limited and Oracle Financial Services, you can compare the effects of market volatilities on Oriental Hotels and Oracle Financial 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 Oracle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Oracle Financial.
Diversification Opportunities for Oriental Hotels and Oracle Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Oracle is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Oracle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle Financial Services 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 Oracle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle Financial Services has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Oracle Financial go up and down completely randomly.
Pair Corralation between Oriental Hotels and Oracle Financial
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 0.97 times more return on investment than Oracle Financial. However, Oriental Hotels Limited is 1.03 times less risky than Oracle Financial. It trades about -0.23 of its potential returns per unit of risk. Oracle Financial Services is currently generating about -0.48 per unit of risk. If you would invest 16,964 in Oriental Hotels Limited on November 6, 2024 and sell it today you would lose (2,135) from holding Oriental Hotels Limited or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Oracle Financial Services
Performance |
| Timeline |
| Oriental Hotels |
| Oracle Financial Services |
Oriental Hotels and Oracle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Oracle Financial
The main advantage of trading using opposite Oriental Hotels and Oracle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Oracle Financial 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 Oracle Financial will offset losses from the drop in Oracle Financial's long position.| Oriental Hotels vs. WESTLIFE FOODWORLD LIMITED | Oriental Hotels vs. Foods Inns Limited | Oriental Hotels vs. Bigbloc Construction Limited | Oriental Hotels vs. Dev Information Technology |
| Oracle Financial vs. Compucom Software Limited | Oracle Financial vs. Kaynes Technology India | Oracle Financial vs. Sintex Plastics Technology | Oracle Financial vs. Gallantt Ispat 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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