Correlation Between Viceroy Hotels and SINCLAIRS HOTELS
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By analyzing existing cross correlation between Viceroy Hotels Limited and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on Viceroy Hotels and SINCLAIRS 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 Viceroy Hotels with a short position of SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viceroy Hotels and SINCLAIRS HOTELS.
Diversification Opportunities for Viceroy Hotels and SINCLAIRS HOTELS
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viceroy and SINCLAIRS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Viceroy Hotels Limited and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD and Viceroy 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 Viceroy Hotels Limited are associated (or correlated) with SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of Viceroy Hotels i.e., Viceroy Hotels and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between Viceroy Hotels and SINCLAIRS HOTELS
Assuming the 90 days trading horizon Viceroy Hotels Limited is expected to generate 1.93 times more return on investment than SINCLAIRS HOTELS. However, Viceroy Hotels is 1.93 times more volatile than SINCLAIRS HOTELS ORD. It trades about 0.07 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about -0.04 per unit of risk. If you would invest 12,479 in Viceroy Hotels Limited on August 28, 2024 and sell it today you would earn a total of 516.00 from holding Viceroy Hotels Limited or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viceroy Hotels Limited vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| Viceroy Hotels |
| SINCLAIRS HOTELS ORD |
Viceroy Hotels and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viceroy Hotels and SINCLAIRS HOTELS
The main advantage of trading using opposite Viceroy Hotels and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viceroy Hotels position performs unexpectedly, SINCLAIRS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.| Viceroy Hotels vs. MMTC Limited | Viceroy Hotels vs. Kingfa Science Technology | Viceroy Hotels vs. Rico Auto Industries | Viceroy Hotels vs. GACM Technologies Limited |
| SINCLAIRS HOTELS vs. The Indian Hotels | SINCLAIRS HOTELS vs. Chalet Hotels Limited | SINCLAIRS HOTELS vs. Lemon Tree Hotels | SINCLAIRS HOTELS vs. Juniper Hotels |
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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