Correlation Between SINCLAIRS HOTELS and V2 Retail
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and V2 Retail Limited, you can compare the effects of market volatilities on SINCLAIRS HOTELS and V2 Retail 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and V2 Retail.
Diversification Opportunities for SINCLAIRS HOTELS and V2 Retail
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINCLAIRS and V2RETAIL is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and V2 Retail go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and V2 Retail
Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to generate 0.54 times more return on investment than V2 Retail. However, SINCLAIRS HOTELS ORD is 1.84 times less risky than V2 Retail. It trades about -0.02 of its potential returns per unit of risk. V2 Retail Limited is currently generating about -0.06 per unit of risk. If you would invest 8,905 in SINCLAIRS HOTELS ORD on August 25, 2024 and sell it today you would lose (94.00) from holding SINCLAIRS HOTELS ORD or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. V2 Retail Limited
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| V2 Retail Limited |
SINCLAIRS HOTELS and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and V2 Retail
The main advantage of trading using opposite SINCLAIRS HOTELS and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS position performs unexpectedly, V2 Retail 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 V2 Retail will offset losses from the drop in V2 Retail'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 |
| V2 Retail vs. MRF Limited | V2 Retail vs. The Orissa Minerals | V2 Retail vs. Honeywell Automation India | V2 Retail vs. Page Industries Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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