Correlation Between SINCLAIRS HOTELS and Agarwal Industrial
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and Agarwal Industrial, you can compare the effects of market volatilities on SINCLAIRS HOTELS and Agarwal Industrial 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 SINCLAIRS HOTELS with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and Agarwal Industrial.
Diversification Opportunities for SINCLAIRS HOTELS and Agarwal Industrial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SINCLAIRS and Agarwal is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and SINCLAIRS 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 SINCLAIRS HOTELS ORD are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and Agarwal Industrial go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and Agarwal Industrial
Assuming the 90 days trading horizon SINCLAIRS HOTELS is expected to generate 6.45 times less return on investment than Agarwal Industrial. But when comparing it to its historical volatility, SINCLAIRS HOTELS ORD is 1.14 times less risky than Agarwal Industrial. It trades about 0.01 of its potential returns per unit of risk. Agarwal Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 113,515 in Agarwal Industrial on September 12, 2024 and sell it today you would earn a total of 11,680 from holding Agarwal Industrial or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. Agarwal Industrial
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| Agarwal Industrial |
SINCLAIRS HOTELS and Agarwal Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and Agarwal Industrial
The main advantage of trading using opposite SINCLAIRS HOTELS and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.| SINCLAIRS HOTELS vs. The Indian Hotels | SINCLAIRS HOTELS vs. Chalet Hotels Limited | SINCLAIRS HOTELS vs. Lemon Tree Hotels | SINCLAIRS HOTELS vs. Juniper Hotels |
| Agarwal Industrial vs. Steel Authority of | Agarwal Industrial vs. Embassy Office Parks | Agarwal Industrial vs. Indian Metals Ferro | Agarwal Industrial vs. JTL Industries |
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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