Correlation Between SINCLAIRS HOTELS and Blue Coast
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and Blue Coast Hotels, you can compare the effects of market volatilities on SINCLAIRS HOTELS and Blue Coast 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 Blue Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and Blue Coast.
Diversification Opportunities for SINCLAIRS HOTELS and Blue Coast
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SINCLAIRS and Blue is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels 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 Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and Blue Coast go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and Blue Coast
Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to generate 3.26 times more return on investment than Blue Coast. However, SINCLAIRS HOTELS is 3.26 times more volatile than Blue Coast Hotels. It trades about 0.23 of its potential returns per unit of risk. Blue Coast Hotels is currently generating about -0.22 per unit of risk. If you would invest 9,072 in SINCLAIRS HOTELS ORD on August 30, 2024 and sell it today you would earn a total of 1,587 from holding SINCLAIRS HOTELS ORD or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. Blue Coast Hotels
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| Blue Coast Hotels |
SINCLAIRS HOTELS and Blue Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and Blue Coast
The main advantage of trading using opposite SINCLAIRS HOTELS and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, Blue Coast 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 Blue Coast will offset losses from the drop in Blue Coast'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 |
| Blue Coast vs. Hemisphere Properties India | Blue Coast vs. India Glycols Limited | Blue Coast vs. Indo Borax Chemicals | Blue Coast 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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