Correlation Between SINCLAIRS HOTELS and Kohinoor Foods
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and Kohinoor Foods Limited, you can compare the effects of market volatilities on SINCLAIRS HOTELS and Kohinoor Foods 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 Kohinoor Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and Kohinoor Foods.
Diversification Opportunities for SINCLAIRS HOTELS and Kohinoor Foods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SINCLAIRS and Kohinoor is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and Kohinoor Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Foods 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 Kohinoor Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Foods has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and Kohinoor Foods go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and Kohinoor Foods
Assuming the 90 days trading horizon SINCLAIRS HOTELS is expected to generate 2.78 times less return on investment than Kohinoor Foods. But when comparing it to its historical volatility, SINCLAIRS HOTELS ORD is 1.15 times less risky than Kohinoor Foods. It trades about 0.01 of its potential returns per unit of risk. Kohinoor Foods Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,136 in Kohinoor Foods Limited on October 11, 2024 and sell it today you would lose (21.00) from holding Kohinoor Foods Limited or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. Kohinoor Foods Limited
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| Kohinoor Foods |
SINCLAIRS HOTELS and Kohinoor Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and Kohinoor Foods
The main advantage of trading using opposite SINCLAIRS HOTELS and Kohinoor Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, Kohinoor Foods 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 Kohinoor Foods will offset losses from the drop in Kohinoor Foods' long position.| SINCLAIRS HOTELS vs. Pritish Nandy Communications | SINCLAIRS HOTELS vs. Welspun Investments and | SINCLAIRS HOTELS vs. Varun Beverages Limited | SINCLAIRS HOTELS vs. BF Investment Limited |
| Kohinoor Foods vs. Compucom Software Limited | Kohinoor Foods vs. SINCLAIRS HOTELS ORD | Kohinoor Foods vs. California Software | Kohinoor Foods vs. Kavveri Telecom Products |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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