Correlation Between Ratnamani Metals and Kamat Hotels
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By analyzing existing cross correlation between Ratnamani Metals Tubes and Kamat Hotels Limited, you can compare the effects of market volatilities on Ratnamani Metals and Kamat 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 Ratnamani Metals with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratnamani Metals and Kamat Hotels.
Diversification Opportunities for Ratnamani Metals and Kamat Hotels
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ratnamani and Kamat is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ratnamani Metals Tubes and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited and Ratnamani Metals 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 Ratnamani Metals Tubes are associated (or correlated) with Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Ratnamani Metals i.e., Ratnamani Metals and Kamat Hotels go up and down completely randomly.
Pair Corralation between Ratnamani Metals and Kamat Hotels
Assuming the 90 days trading horizon Ratnamani Metals is expected to generate 1.23 times less return on investment than Kamat Hotels. But when comparing it to its historical volatility, Ratnamani Metals Tubes is 1.5 times less risky than Kamat Hotels. It trades about 0.05 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13,010 in Kamat Hotels Limited on October 16, 2024 and sell it today you would earn a total of 6,983 from holding Kamat Hotels Limited or generate 53.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Ratnamani Metals Tubes vs. Kamat Hotels Limited
Performance |
| Timeline |
| Ratnamani Metals Tubes |
| Kamat Hotels Limited |
Ratnamani Metals and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratnamani Metals and Kamat Hotels
The main advantage of trading using opposite Ratnamani Metals and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratnamani Metals position performs unexpectedly, Kamat 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| Ratnamani Metals vs. Reliance Communications Limited | Ratnamani Metals vs. Dev Information Technology | Ratnamani Metals vs. Allied Blenders Distillers | Ratnamani Metals vs. Tata Communications Limited |
| Kamat Hotels vs. United Breweries Limited | Kamat Hotels vs. Chembond Chemicals | Kamat Hotels vs. Fertilizers and Chemicals | Kamat Hotels vs. Tree House Education |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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