Correlation Between Samhi Hotels and JGCHEMICALS
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By analyzing existing cross correlation between Samhi Hotels Limited and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Samhi Hotels and JGCHEMICALS 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 JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and JGCHEMICALS.
Diversification Opportunities for Samhi Hotels and JGCHEMICALS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samhi and JGCHEMICALS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED 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 JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Samhi Hotels and JGCHEMICALS
Assuming the 90 days trading horizon Samhi Hotels Limited is expected to generate 1.13 times more return on investment than JGCHEMICALS. However, Samhi Hotels is 1.13 times more volatile than JGCHEMICALS LIMITED. It trades about 0.17 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about -0.19 per unit of risk. If you would invest 18,469 in Samhi Hotels Limited on September 28, 2024 and sell it today you would earn a total of 1,441 from holding Samhi Hotels Limited or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samhi Hotels Limited vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Samhi Hotels Limited |
| JGCHEMICALS LIMITED |
Samhi Hotels and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and JGCHEMICALS
The main advantage of trading using opposite Samhi Hotels and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS's long position.| Samhi Hotels vs. Kaushalya Infrastructure Development | Samhi Hotels vs. Tarapur Transformers Limited | Samhi Hotels vs. Kingfa Science Technology | Samhi Hotels vs. Rico Auto Industries |
| JGCHEMICALS vs. Oriental Hotels Limited | JGCHEMICALS vs. Samhi Hotels Limited | JGCHEMICALS vs. Blue Coast Hotels | JGCHEMICALS vs. EMBASSY OFFICE PARKS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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