Correlation Between ZF Commercial and Samhi Hotels
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By analyzing existing cross correlation between ZF Commercial Vehicle and Samhi Hotels Limited, you can compare the effects of market volatilities on ZF Commercial and Samhi 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 ZF Commercial with a short position of Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZF Commercial and Samhi Hotels.
Diversification Opportunities for ZF Commercial and Samhi Hotels
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZFCVINDIA and Samhi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ZF Commercial Vehicle and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi Hotels Limited and ZF Commercial 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 ZF Commercial Vehicle are associated (or correlated) with Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of ZF Commercial i.e., ZF Commercial and Samhi Hotels go up and down completely randomly.
Pair Corralation between ZF Commercial and Samhi Hotels
Assuming the 90 days trading horizon ZF Commercial is expected to generate 1.03 times less return on investment than Samhi Hotels. But when comparing it to its historical volatility, ZF Commercial Vehicle is 1.16 times less risky than Samhi Hotels. It trades about 0.05 of its potential returns per unit of risk. Samhi Hotels Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,340 in Samhi Hotels Limited on August 25, 2024 and sell it today you would earn a total of 3,963 from holding Samhi Hotels Limited or generate 27.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 58.86% |
| Values | Daily Returns |
ZF Commercial Vehicle vs. Samhi Hotels Limited
Performance |
| Timeline |
| ZF Commercial Vehicle |
| Samhi Hotels Limited |
ZF Commercial and Samhi Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZF Commercial and Samhi Hotels
The main advantage of trading using opposite ZF Commercial and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZF Commercial position performs unexpectedly, Samhi 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 Samhi Hotels will offset losses from the drop in Samhi Hotels' long position.| ZF Commercial vs. Samhi Hotels Limited | ZF Commercial vs. SINCLAIRS HOTELS ORD | ZF Commercial vs. Oriental Hotels Limited | ZF Commercial vs. One 97 Communications |
| Samhi Hotels vs. Sakar Healthcare Limited | Samhi Hotels vs. The Byke Hospitality | Samhi Hotels vs. Apex Frozen Foods | Samhi Hotels vs. Kohinoor 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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