Correlation Between Investment Trust and Kamat Hotels
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By analyzing existing cross correlation between The Investment Trust and Kamat Hotels Limited, you can compare the effects of market volatilities on Investment Trust 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 Investment Trust with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Kamat Hotels.
Diversification Opportunities for Investment Trust and Kamat Hotels
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investment and Kamat is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust 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 Investment Trust 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 The Investment Trust 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 Investment Trust i.e., Investment Trust and Kamat Hotels go up and down completely randomly.
Pair Corralation between Investment Trust and Kamat Hotels
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the Kamat Hotels. But the stock apears to be less risky and, when comparing its historical volatility, The Investment Trust is 1.96 times less risky than Kamat Hotels. The stock trades about -0.44 of its potential returns per unit of risk. The Kamat Hotels Limited is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 24,246 in Kamat Hotels Limited on October 11, 2024 and sell it today you would lose (1,676) from holding Kamat Hotels Limited or give up 6.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Investment Trust vs. Kamat Hotels Limited
Performance |
| Timeline |
| Investment Trust |
| Kamat Hotels Limited |
Investment Trust and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Kamat Hotels
The main advantage of trading using opposite Investment Trust and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust 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.| Investment Trust vs. Reliance Communications Limited | Investment Trust vs. Indian Metals Ferro | Investment Trust vs. Shyam Metalics and | Investment Trust vs. One 97 Communications |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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