Correlation Between SAL Steel and Samhi Hotels
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By analyzing existing cross correlation between SAL Steel Limited and Samhi Hotels Limited, you can compare the effects of market volatilities on SAL Steel and Samhi 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 SAL Steel with a short position of Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and Samhi Hotels.
Diversification Opportunities for SAL Steel and Samhi Hotels
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAL and Samhi is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel Limited and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi Hotels Limited and SAL Steel 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 SAL Steel Limited are associated (or correlated) with Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of SAL Steel i.e., SAL Steel and Samhi Hotels go up and down completely randomly.
Pair Corralation between SAL Steel and Samhi Hotels
Assuming the 90 days trading horizon SAL Steel Limited is expected to under-perform the Samhi Hotels. In addition to that, SAL Steel is 1.23 times more volatile than Samhi Hotels Limited. It trades about -0.05 of its total potential returns per unit of risk. Samhi Hotels Limited is currently generating about 0.04 per unit of volatility. If you would invest 18,908 in Samhi Hotels Limited on September 12, 2024 and sell it today you would earn a total of 296.00 from holding Samhi Hotels Limited or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAL Steel Limited vs. Samhi Hotels Limited
Performance |
| Timeline |
| SAL Steel Limited |
| Samhi Hotels Limited |
SAL Steel and Samhi Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and Samhi Hotels
The main advantage of trading using opposite SAL Steel and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel position performs unexpectedly, Samhi 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 Samhi Hotels will offset losses from the drop in Samhi Hotels' long position.| SAL Steel vs. Steel Authority of | SAL Steel vs. Embassy Office Parks | SAL Steel vs. Indian Metals Ferro | SAL Steel vs. JTL Industries |
| Samhi Hotels vs. Hemisphere Properties India | Samhi Hotels vs. Indo Borax Chemicals | Samhi Hotels vs. Kingfa Science Technology | Samhi Hotels vs. Alkali Metals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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