Correlation Between Refex Industries and Kamat Hotels
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By analyzing existing cross correlation between Refex Industries Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on Refex Industries 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 Refex Industries with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Kamat Hotels.
Diversification Opportunities for Refex Industries and Kamat Hotels
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Refex and Kamat is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited 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 Refex Industries 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 Refex Industries Limited 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 Refex Industries i.e., Refex Industries and Kamat Hotels go up and down completely randomly.
Pair Corralation between Refex Industries and Kamat Hotels
Assuming the 90 days trading horizon Refex Industries Limited is expected to generate 1.31 times more return on investment than Kamat Hotels. However, Refex Industries is 1.31 times more volatile than Kamat Hotels Limited. It trades about 0.14 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.05 per unit of risk. If you would invest 5,212 in Refex Industries Limited on October 12, 2024 and sell it today you would earn a total of 43,083 from holding Refex Industries Limited or generate 826.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Refex Industries Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| Refex Industries |
| Kamat Hotels Limited |
Refex Industries and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Kamat Hotels
The main advantage of trading using opposite Refex Industries and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries 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.| Refex Industries vs. Digjam Limited | Refex Industries vs. Gujarat Raffia Industries | Refex Industries vs. E2E Networks Limited | Refex Industries vs. Datamatics Global Services |
| Kamat Hotels vs. Consolidated Construction Consortium | Kamat Hotels vs. Biofil Chemicals Pharmaceuticals | Kamat Hotels vs. Refex Industries Limited | Kamat 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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