Correlation Between Oriental Hotels and Styrenix Performance
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By analyzing existing cross correlation between Oriental Hotels Limited and Styrenix Performance Materials, you can compare the effects of market volatilities on Oriental Hotels and Styrenix Performance 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 Styrenix Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Hotels and Styrenix Performance.
Diversification Opportunities for Oriental Hotels and Styrenix Performance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriental and Styrenix is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Hotels Limited and Styrenix Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Styrenix Performance 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 Styrenix Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Styrenix Performance has no effect on the direction of Oriental Hotels i.e., Oriental Hotels and Styrenix Performance go up and down completely randomly.
Pair Corralation between Oriental Hotels and Styrenix Performance
Assuming the 90 days trading horizon Oriental Hotels is expected to generate 7.64 times less return on investment than Styrenix Performance. In addition to that, Oriental Hotels is 1.33 times more volatile than Styrenix Performance Materials. It trades about 0.01 of its total potential returns per unit of risk. Styrenix Performance Materials is currently generating about 0.14 per unit of volatility. If you would invest 248,742 in Styrenix Performance Materials on September 24, 2024 and sell it today you would earn a total of 49,823 from holding Styrenix Performance Materials or generate 20.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oriental Hotels Limited vs. Styrenix Performance Materials
Performance |
Timeline |
Oriental Hotels |
Styrenix Performance |
Oriental Hotels and Styrenix Performance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oriental Hotels and Styrenix Performance
The main advantage of trading using opposite Oriental Hotels and Styrenix Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Hotels position performs unexpectedly, Styrenix Performance 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 Styrenix Performance will offset losses from the drop in Styrenix Performance'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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