Correlation Between Samhi Hotels and Blue Coast
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By analyzing existing cross correlation between Samhi Hotels Limited and Blue Coast Hotels, you can compare the effects of market volatilities on Samhi Hotels and Blue Coast 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 Samhi Hotels with a short position of Blue Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and Blue Coast.
Diversification Opportunities for Samhi Hotels and Blue Coast
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samhi and Blue is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels and Samhi Hotels 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 Samhi Hotels Limited are associated (or correlated) with Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and Blue Coast go up and down completely randomly.
Pair Corralation between Samhi Hotels and Blue Coast
Assuming the 90 days trading horizon Samhi Hotels Limited is expected to generate 1.66 times more return on investment than Blue Coast. However, Samhi Hotels is 1.66 times more volatile than Blue Coast Hotels. It trades about 0.01 of its potential returns per unit of risk. Blue Coast Hotels is currently generating about -0.22 per unit of risk. If you would invest 18,282 in Samhi Hotels Limited on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Samhi Hotels Limited or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Samhi Hotels Limited vs. Blue Coast Hotels
Performance |
| Timeline |
| Samhi Hotels Limited |
| Blue Coast Hotels |
Samhi Hotels and Blue Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and Blue Coast
The main advantage of trading using opposite Samhi Hotels and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, Blue Coast 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 Blue Coast will offset losses from the drop in Blue Coast's long position.| Samhi Hotels vs. Indian Railway Finance | Samhi Hotels vs. Cholamandalam Financial Holdings | Samhi Hotels vs. Reliance Industries Limited | Samhi Hotels vs. Tata Consultancy Services |
| Blue Coast vs. Indian Railway Finance | Blue Coast vs. Cholamandalam Financial Holdings | Blue Coast vs. Reliance Industries Limited | Blue Coast vs. Tata Consultancy Services |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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