Correlation Between Oriental Hotels and JGCHEMICALS
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By analyzing existing cross correlation between Oriental Hotels Limited and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Oriental Hotels and JGCHEMICALS 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 Oriental Hotels with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and JGCHEMICALS.
Diversification Opportunities for Oriental Hotels and JGCHEMICALS
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriental and JGCHEMICALS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and Oriental 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 Oriental Hotels Limited are associated (or correlated) with JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Oriental Hotels and JGCHEMICALS
Assuming the 90 days trading horizon Oriental Hotels is expected to generate 2.18 times less return on investment than JGCHEMICALS. But when comparing it to its historical volatility, Oriental Hotels Limited is 1.52 times less risky than JGCHEMICALS. It trades about 0.08 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 18,480 in JGCHEMICALS LIMITED on September 28, 2024 and sell it today you would earn a total of 22,505 from holding JGCHEMICALS LIMITED or generate 121.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 40.25% |
Values | Daily Returns |
Oriental Hotels Limited vs. JGCHEMICALS LIMITED
Performance |
Timeline |
Oriental Hotels |
JGCHEMICALS LIMITED |
Oriental Hotels and JGCHEMICALS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oriental Hotels and JGCHEMICALS
The main advantage of trading using opposite Oriental Hotels and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS's long position.Oriental Hotels vs. Kaushalya Infrastructure Development | Oriental Hotels vs. Tarapur Transformers Limited | Oriental Hotels vs. Kingfa Science Technology | Oriental Hotels vs. Rico Auto Industries |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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