Correlation Between Ankit Metal and Kamat Hotels

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Can any of the company-specific risk be diversified away by investing in both Ankit Metal and Kamat Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ankit Metal and Kamat Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ankit Metal Power and Kamat Hotels Limited, you can compare the effects of market volatilities on Ankit Metal and Kamat 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 Ankit Metal with a short position of Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Kamat Hotels.

Diversification Opportunities for Ankit Metal and Kamat Hotels

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ankit and Kamat is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ankit Metal Power and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited and Ankit Metal 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 Ankit Metal Power are associated (or correlated) with Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Ankit Metal i.e., Ankit Metal and Kamat Hotels go up and down completely randomly.

Pair Corralation between Ankit Metal and Kamat Hotels

Assuming the 90 days trading horizon Ankit Metal Power is expected to generate 0.79 times more return on investment than Kamat Hotels. However, Ankit Metal Power is 1.27 times less risky than Kamat Hotels. It trades about -0.02 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about -0.11 per unit of risk. If you would invest  189.00  in Ankit Metal Power on September 3, 2025 and sell it today you would lose (10.00) from holding Ankit Metal Power or give up 5.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ankit Metal Power  vs.  Kamat Hotels Limited

 Performance 
       Timeline  
Ankit Metal Power 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Ankit Metal Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ankit Metal is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Kamat Hotels Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kamat Hotels Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Ankit Metal and Kamat Hotels Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ankit Metal and Kamat Hotels

The main advantage of trading using opposite Ankit Metal and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankit Metal position performs unexpectedly, Kamat 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.
The idea behind Ankit Metal Power and Kamat Hotels Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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