Correlation Between Samhi Hotels and Oriental Hotels
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By analyzing existing cross correlation between Samhi Hotels Limited and Oriental Hotels Limited, you can compare the effects of market volatilities on Samhi Hotels and Oriental 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 Samhi Hotels with a short position of Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and Oriental Hotels.
Diversification Opportunities for Samhi Hotels and Oriental Hotels
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samhi and Oriental is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental 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 Oriental Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Hotels has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and Oriental Hotels go up and down completely randomly.
Pair Corralation between Samhi Hotels and Oriental Hotels
Assuming the 90 days trading horizon Samhi Hotels Limited is expected to under-perform the Oriental Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Samhi Hotels Limited is 1.32 times less risky than Oriental Hotels. The stock trades about -0.05 of its potential returns per unit of risk. The Oriental Hotels Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 15,921 in Oriental Hotels Limited on November 2, 2024 and sell it today you would lose (941.00) from holding Oriental Hotels Limited or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhi Hotels Limited vs. Oriental Hotels Limited
Performance |
| Timeline |
| Samhi Hotels Limited |
| Oriental Hotels |
Samhi Hotels and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and Oriental Hotels
The main advantage of trading using opposite Samhi Hotels and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, Oriental 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 Oriental Hotels will offset losses from the drop in Oriental Hotels' long position.| Samhi Hotels vs. KNR Constructions Limited | Samhi Hotels vs. Action Construction Equipment | Samhi Hotels vs. 21st Century Management | Samhi Hotels vs. Shaily Engineering Plastics |
| Oriental Hotels vs. JSW Steel Limited | Oriental Hotels vs. Network18 Media Investments | Oriental Hotels vs. ILFS Investment Managers | Oriental Hotels vs. MSP Steel Power |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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