Correlation Between Patanjali Foods and Oriental Hotels
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By analyzing existing cross correlation between Patanjali Foods Limited and Oriental Hotels Limited, you can compare the effects of market volatilities on Patanjali Foods and Oriental Hotels 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 Patanjali Foods with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patanjali Foods and Oriental Hotels.
Diversification Opportunities for Patanjali Foods and Oriental Hotels
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Patanjali and Oriental is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Patanjali Foods Limited and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Patanjali Foods 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 Patanjali Foods Limited are associated (or correlated) with Oriental Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Hotels has no effect on the direction of Patanjali Foods i.e., Patanjali Foods and Oriental Hotels go up and down completely randomly.
Pair Corralation between Patanjali Foods and Oriental Hotels
Assuming the 90 days trading horizon Patanjali Foods is expected to generate 1.41 times less return on investment than Oriental Hotels. But when comparing it to its historical volatility, Patanjali Foods Limited is 1.23 times less risky than Oriental Hotels. It trades about 0.08 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,507 in Oriental Hotels Limited on September 1, 2024 and sell it today you would earn a total of 4,748 from holding Oriental Hotels Limited or generate 35.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patanjali Foods Limited vs. Oriental Hotels Limited
Performance |
| Timeline |
| Patanjali Foods |
| Oriental Hotels |
Patanjali Foods and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patanjali Foods and Oriental Hotels
The main advantage of trading using opposite Patanjali Foods and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patanjali Foods position performs unexpectedly, Oriental Hotels 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 Oriental Hotels will offset losses from the drop in Oriental Hotels' long position.| Patanjali Foods vs. Rajnandini Metal Limited | Patanjali Foods vs. Hexa Tradex Limited | Patanjali Foods vs. Praxis Home Retail | Patanjali Foods vs. Cantabil Retail India |
| Oriental Hotels vs. MRF Limited | Oriental Hotels vs. Bosch Limited | Oriental Hotels vs. Bajaj Holdings Investment | Oriental Hotels vs. Vardhman Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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