Correlation Between Speciality Restaurants and Indian Oil
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By analyzing existing cross correlation between Speciality Restaurants Limited and Indian Oil, you can compare the effects of market volatilities on Speciality Restaurants and Indian Oil 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 Speciality Restaurants with a short position of Indian Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speciality Restaurants and Indian Oil.
Diversification Opportunities for Speciality Restaurants and Indian Oil
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Speciality and Indian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Speciality Restaurants Limited and Indian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Oil and Speciality Restaurants 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 Speciality Restaurants Limited are associated (or correlated) with Indian Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Oil has no effect on the direction of Speciality Restaurants i.e., Speciality Restaurants and Indian Oil go up and down completely randomly.
Pair Corralation between Speciality Restaurants and Indian Oil
Assuming the 90 days trading horizon Speciality Restaurants Limited is expected to under-perform the Indian Oil. But the stock apears to be less risky and, when comparing its historical volatility, Speciality Restaurants Limited is 1.18 times less risky than Indian Oil. The stock trades about -0.12 of its potential returns per unit of risk. The Indian Oil is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 13,290 in Indian Oil on September 23, 2024 and sell it today you would earn a total of 418.00 from holding Indian Oil or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Speciality Restaurants Limited vs. Indian Oil
Performance |
| Timeline |
| Speciality Restaurants |
| Indian Oil |
Speciality Restaurants and Indian Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speciality Restaurants and Indian Oil
The main advantage of trading using opposite Speciality Restaurants and Indian Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speciality Restaurants position performs unexpectedly, Indian Oil 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 Indian Oil will offset losses from the drop in Indian Oil's long position.| Speciality Restaurants vs. Kingfa Science Technology | Speciality Restaurants vs. Rico Auto Industries | Speciality Restaurants vs. GACM Technologies Limited | Speciality Restaurants vs. COSMO FIRST LIMITED |
| Indian Oil vs. Teamlease Services Limited | Indian Oil vs. Healthcare Global Enterprises | Indian Oil vs. Aster DM Healthcare | Indian Oil vs. Speciality Restaurants 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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