Correlation Between Samhi Hotels and Baazar Style
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By analyzing existing cross correlation between Samhi Hotels Limited and Baazar Style Retail, you can compare the effects of market volatilities on Samhi Hotels and Baazar Style 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 Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and Baazar Style.
Diversification Opportunities for Samhi Hotels and Baazar Style
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samhi and Baazar is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels Limited and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail 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 Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Samhi Hotels i.e., Samhi Hotels and Baazar Style go up and down completely randomly.
Pair Corralation between Samhi Hotels and Baazar Style
Assuming the 90 days trading horizon Samhi Hotels Limited is expected to generate 0.72 times more return on investment than Baazar Style. However, Samhi Hotels Limited is 1.4 times less risky than Baazar Style. It trades about 0.05 of its potential returns per unit of risk. Baazar Style Retail is currently generating about -0.06 per unit of risk. If you would invest 14,340 in Samhi Hotels Limited on September 2, 2024 and sell it today you would earn a total of 3,959 from holding Samhi Hotels Limited or generate 27.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 20.41% |
| Values | Daily Returns |
Samhi Hotels Limited vs. Baazar Style Retail
Performance |
| Timeline |
| Samhi Hotels Limited |
| Baazar Style Retail |
Samhi Hotels and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and Baazar Style
The main advantage of trading using opposite Samhi Hotels and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style'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 |
| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Kingfa Science Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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