Correlation Between SINCLAIRS HOTELS and GTL
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and GTL Limited, you can compare the effects of market volatilities on SINCLAIRS HOTELS and GTL 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 GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and GTL.
Diversification Opportunities for SINCLAIRS HOTELS and GTL
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SINCLAIRS and GTL is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL 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 GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and GTL go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and GTL
Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to generate 1.53 times more return on investment than GTL. However, SINCLAIRS HOTELS is 1.53 times more volatile than GTL Limited. It trades about -0.13 of its potential returns per unit of risk. GTL Limited is currently generating about -0.32 per unit of risk. If you would invest 9,736 in SINCLAIRS HOTELS ORD on November 28, 2024 and sell it today you would lose (1,057) from holding SINCLAIRS HOTELS ORD or give up 10.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. GTL Limited
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| GTL Limited |
SINCLAIRS HOTELS and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and GTL
The main advantage of trading using opposite SINCLAIRS HOTELS and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| SINCLAIRS HOTELS vs. Network18 Media Investments | SINCLAIRS HOTELS vs. Compucom Software Limited | SINCLAIRS HOTELS vs. Tera Software Limited | SINCLAIRS HOTELS vs. Nucleus Software Exports |
| GTL vs. Indo Rama Synthetics | GTL vs. Zuari Agro Chemicals | GTL vs. Goldstone Technologies Limited | GTL vs. Transport of |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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