Correlation Between Oriental Hotels and Steelcast
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By analyzing existing cross correlation between Oriental Hotels Limited and Steelcast Limited, you can compare the effects of market volatilities on Oriental Hotels and Steelcast 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 Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Steelcast.
Diversification Opportunities for Oriental Hotels and Steelcast
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Steelcast is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited 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 Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Steelcast go up and down completely randomly.
Pair Corralation between Oriental Hotels and Steelcast
Assuming the 90 days trading horizon Oriental Hotels Limited is expected to generate 1.29 times more return on investment than Steelcast. However, Oriental Hotels is 1.29 times more volatile than Steelcast Limited. It trades about 0.18 of its potential returns per unit of risk. Steelcast Limited is currently generating about 0.02 per unit of risk. If you would invest 16,275 in Oriental Hotels Limited on August 30, 2024 and sell it today you would earn a total of 2,019 from holding Oriental Hotels Limited or generate 12.41% 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. Steelcast Limited
Performance |
| Timeline |
| Oriental Hotels |
| Steelcast Limited |
Oriental Hotels and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Hotels and Steelcast
The main advantage of trading using opposite Oriental Hotels and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| Oriental Hotels vs. Hemisphere Properties India | Oriental Hotels vs. India Glycols Limited | Oriental Hotels vs. Indo Borax Chemicals | Oriental Hotels vs. Kingfa Science Technology |
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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