Correlation Between United Breweries and Kamat Hotels
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By analyzing existing cross correlation between United Breweries Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on United Breweries 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 United Breweries with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and Kamat Hotels.
Diversification Opportunities for United Breweries and Kamat Hotels
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Kamat is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries 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 United Breweries 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 United Breweries 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 United Breweries i.e., United Breweries and Kamat Hotels go up and down completely randomly.
Pair Corralation between United Breweries and Kamat Hotels
Assuming the 90 days trading horizon United Breweries Limited is expected to generate 0.62 times more return on investment than Kamat Hotels. However, United Breweries Limited is 1.6 times less risky than Kamat Hotels. It trades about 0.06 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about -0.01 per unit of risk. If you would invest 195,050 in United Breweries Limited on October 30, 2024 and sell it today you would earn a total of 7,390 from holding United Breweries Limited or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
United Breweries Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| United Breweries |
| Kamat Hotels Limited |
United Breweries and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and Kamat Hotels
The main advantage of trading using opposite United Breweries and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries 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.| United Breweries vs. Hindustan Foods Limited | United Breweries vs. Univa Foods Limited | United Breweries vs. Patanjali Foods Limited | United Breweries vs. Akme Fintrade India |
| Kamat Hotels vs. Shivalik Bimetal Controls | Kamat Hotels vs. Rajnandini Metal Limited | Kamat Hotels vs. Nalwa Sons Investments | Kamat Hotels vs. Tube Investments of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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