Correlation Between SINCLAIRS HOTELS and BF Utilities
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and BF Utilities Limited, you can compare the effects of market volatilities on SINCLAIRS HOTELS and BF Utilities 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 BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and BF Utilities.
Diversification Opportunities for SINCLAIRS HOTELS and BF Utilities
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SINCLAIRS and BFUTILITIE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited 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 BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and BF Utilities go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and BF Utilities
Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to generate 2.36 times more return on investment than BF Utilities. However, SINCLAIRS HOTELS is 2.36 times more volatile than BF Utilities Limited. It trades about 0.32 of its potential returns per unit of risk. BF Utilities Limited is currently generating about 0.01 per unit of risk. If you would invest 9,073 in SINCLAIRS HOTELS ORD on September 14, 2024 and sell it today you would earn a total of 2,180 from holding SINCLAIRS HOTELS ORD or generate 24.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. BF Utilities Limited
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| BF Utilities Limited |
SINCLAIRS HOTELS and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and BF Utilities
The main advantage of trading using opposite SINCLAIRS HOTELS and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, BF Utilities 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 BF Utilities will offset losses from the drop in BF Utilities' 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 |
| BF Utilities vs. Allied Blenders Distillers | BF Utilities vs. SINCLAIRS HOTELS ORD | BF Utilities vs. Royal Orchid Hotels | BF Utilities vs. Blue Coast Hotels |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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