Correlation Between Samhi Hotels and Jindal Poly
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By analyzing existing cross correlation between Samhi Hotels Limited and Jindal Poly Investment, you can compare the effects of market volatilities on Samhi Hotels and Jindal Poly 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 Jindal Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and Jindal Poly.
Diversification Opportunities for Samhi Hotels and Jindal Poly
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samhi and Jindal is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and Jindal Poly Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Poly Investment 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 Jindal Poly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Poly Investment has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and Jindal Poly go up and down completely randomly.
Pair Corralation between Samhi Hotels and Jindal Poly
Assuming the 90 days trading horizon Samhi Hotels is expected to generate 2.18 times less return on investment than Jindal Poly. But when comparing it to its historical volatility, Samhi Hotels Limited is 1.33 times less risky than Jindal Poly. It trades about 0.05 of its potential returns per unit of risk. Jindal Poly Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 42,265 in Jindal Poly Investment on August 27, 2024 and sell it today you would earn a total of 59,395 from holding Jindal Poly Investment or generate 140.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 64.8% |
| Values | Daily Returns |
Samhi Hotels Limited vs. Jindal Poly Investment
Performance |
| Timeline |
| Samhi Hotels Limited |
| Jindal Poly Investment |
Samhi Hotels and Jindal Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and Jindal Poly
The main advantage of trading using opposite Samhi Hotels and Jindal Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, Jindal Poly 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 Jindal Poly will offset losses from the drop in Jindal Poly's long position.| Samhi Hotels vs. MMTC Limited | Samhi Hotels vs. Kingfa Science Technology | Samhi Hotels vs. Rico Auto Industries | Samhi Hotels vs. GACM Technologies Limited |
| Jindal Poly vs. Samhi Hotels Limited | Jindal Poly vs. BF Investment Limited | Jindal Poly vs. Pilani Investment and | Jindal Poly vs. Oriental Hotels 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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