Correlation Between Whirlpool and Indian Hotels
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By analyzing existing cross correlation between Whirlpool of India and The Indian Hotels, you can compare the effects of market volatilities on Whirlpool and Indian 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 Whirlpool with a short position of Indian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Indian Hotels.
Diversification Opportunities for Whirlpool and Indian Hotels
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Whirlpool and Indian is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool of India and The Indian Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Hotels and Whirlpool 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 Whirlpool of India are associated (or correlated) with Indian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Hotels has no effect on the direction of Whirlpool i.e., Whirlpool and Indian Hotels go up and down completely randomly.
Pair Corralation between Whirlpool and Indian Hotels
Assuming the 90 days trading horizon Whirlpool of India is expected to under-perform the Indian Hotels. In addition to that, Whirlpool is 1.06 times more volatile than The Indian Hotels. It trades about -0.28 of its total potential returns per unit of risk. The Indian Hotels is currently generating about -0.2 per unit of volatility. If you would invest 86,265 in The Indian Hotels on October 25, 2024 and sell it today you would lose (8,990) from holding The Indian Hotels or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Whirlpool of India vs. The Indian Hotels
Performance |
| Timeline |
| Whirlpool of India |
| Indian Hotels |
Whirlpool and Indian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and Indian Hotels
The main advantage of trading using opposite Whirlpool and Indian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, Indian 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 Indian Hotels will offset losses from the drop in Indian Hotels' long position.| Whirlpool vs. Allied Blenders Distillers | Whirlpool vs. Bombay Burmah Trading | Whirlpool vs. Newgen Software Technologies | Whirlpool vs. Compucom Software Limited |
| Indian Hotels vs. Sarthak Metals Limited | Indian Hotels vs. Manaksia Coated Metals | Indian Hotels vs. Transport of | Indian Hotels vs. Shyam Metalics and |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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