Correlation Between Power Finance and Oriental Hotels
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By analyzing existing cross correlation between Power Finance and Oriental Hotels Limited, you can compare the effects of market volatilities on Power Finance 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 Power Finance with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Finance and Oriental Hotels.
Diversification Opportunities for Power Finance and Oriental Hotels
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Power and Oriental is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Power Finance and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels and Power Finance 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 Power Finance 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 Power Finance i.e., Power Finance and Oriental Hotels go up and down completely randomly.
Pair Corralation between Power Finance and Oriental Hotels
Assuming the 90 days trading horizon Power Finance is expected to generate 1.33 times more return on investment than Oriental Hotels. However, Power Finance is 1.33 times more volatile than Oriental Hotels Limited. It trades about 0.11 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about 0.08 per unit of risk. If you would invest 10,127 in Power Finance on August 25, 2024 and sell it today you would earn a total of 37,668 from holding Power Finance or generate 371.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Finance vs. Oriental Hotels Limited
Performance |
| Timeline |
| Power Finance |
| Oriental Hotels |
Power Finance and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Finance and Oriental Hotels
The main advantage of trading using opposite Power Finance and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Finance 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.| Power Finance vs. Viceroy Hotels Limited | Power Finance vs. Blue Jet Healthcare | Power Finance vs. TTK Healthcare Limited | Power Finance vs. Allied Blenders Distillers |
| Oriental Hotels vs. MMTC Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries | Oriental Hotels vs. GACM Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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