Correlation Between Oriental Hotels and Punjab Sind
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By analyzing existing cross correlation between Oriental Hotels Limited and Punjab Sind Bank, you can compare the effects of market volatilities on Oriental Hotels and Punjab Sind 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 Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Punjab Sind.
Diversification Opportunities for Oriental Hotels and Punjab Sind
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oriental and Punjab is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Punjab Sind Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Sind Bank 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 Punjab Sind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Sind Bank has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Punjab Sind go up and down completely randomly.
Pair Corralation between Oriental Hotels and Punjab Sind
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to under-perform the Punjab Sind. In addition to that, Oriental Hotels is 1.16 times more volatile than Punjab Sind Bank. It trades about -0.07 of its total potential returns per unit of risk. Punjab Sind Bank is currently generating about -0.05 per unit of volatility. If you would invest 4,934 in Punjab Sind Bank on September 28, 2024 and sell it today you would lose (131.00) from holding Punjab Sind Bank or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oriental Hotels Limited vs. Punjab Sind Bank
Performance |
| Timeline |
| Oriental Hotels |
| Punjab Sind Bank |
Oriental Hotels and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Punjab Sind
The main advantage of trading using opposite Oriental Hotels and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Punjab Sind 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 Punjab Sind will offset losses from the drop in Punjab Sind's long position.| Oriental Hotels vs. Kaushalya Infrastructure Development | Oriental Hotels vs. Tarapur Transformers Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries |
| Punjab Sind vs. Network18 Media Investments | Punjab Sind vs. FCS Software Solutions | Punjab Sind vs. POWERGRID Infrastructure Investment | Punjab Sind vs. R S Software |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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