Correlation Between Samhi Hotels and JB Chemicals
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By analyzing existing cross correlation between Samhi Hotels Limited and JB Chemicals Pharmaceuticals, you can compare the effects of market volatilities on Samhi Hotels and JB Chemicals 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 JB Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and JB Chemicals.
Diversification Opportunities for Samhi Hotels and JB Chemicals
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samhi and JBCHEPHARM is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and JB Chemicals Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Chemicals Pharmac 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 JB Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Chemicals Pharmac has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and JB Chemicals go up and down completely randomly.
Pair Corralation between Samhi Hotels and JB Chemicals
Assuming the 90 days trading horizon Samhi Hotels is expected to generate 2.45 times less return on investment than JB Chemicals. But when comparing it to its historical volatility, Samhi Hotels Limited is 3.13 times less risky than JB Chemicals. It trades about 0.06 of its potential returns per unit of risk. JB Chemicals Pharmaceuticals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 94,412 in JB Chemicals Pharmaceuticals on September 18, 2024 and sell it today you would earn a total of 87,758 from holding JB Chemicals Pharmaceuticals or generate 92.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.3% |
| Values | Daily Returns |
Samhi Hotels Limited vs. JB Chemicals Pharmaceuticals
Performance |
| Timeline |
| Samhi Hotels Limited |
| JB Chemicals Pharmac |
Samhi Hotels and JB Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and JB Chemicals
The main advantage of trading using opposite Samhi Hotels and JB Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, JB Chemicals 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 JB Chemicals will offset losses from the drop in JB Chemicals' 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 |
| JB Chemicals vs. Kingfa Science Technology | JB Chemicals vs. Rico Auto Industries | JB Chemicals vs. GACM Technologies Limited | JB Chemicals vs. COSMO FIRST 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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