Correlation Between Spencers Retail and Kamat Hotels
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By analyzing existing cross correlation between Spencers Retail Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on Spencers Retail and Kamat Hotels 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 Spencers Retail with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Kamat Hotels.
Diversification Opportunities for Spencers Retail and Kamat Hotels
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spencers and Kamat is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Spencers Retail i.e., Spencers Retail and Kamat Hotels go up and down completely randomly.
Pair Corralation between Spencers Retail and Kamat Hotels
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 1.15 times more return on investment than Kamat Hotels. However, Spencers Retail is 1.15 times more volatile than Kamat Hotels Limited. It trades about -0.03 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about -0.11 per unit of risk. If you would invest 9,092 in Spencers Retail Limited on October 11, 2024 and sell it today you would lose (275.00) from holding Spencers Retail Limited or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| Spencers Retail |
| Kamat Hotels Limited |
Spencers Retail and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Kamat Hotels
The main advantage of trading using opposite Spencers Retail and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, Kamat Hotels 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| Spencers Retail vs. Home First Finance | Spencers Retail vs. Data Patterns Limited | Spencers Retail vs. Garware Hi Tech Films | Spencers Retail vs. Golden Tobacco Limited |
| Kamat Hotels vs. Heritage Foods Limited | Kamat Hotels vs. Spencers Retail Limited | Kamat Hotels vs. Silgo Retail Limited | Kamat Hotels vs. LT Foods 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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