Correlation Between Sakar Healthcare and Ventive Hospitality

Can any of the company-specific risk be diversified away by investing in both Sakar Healthcare and Ventive Hospitality 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 Sakar Healthcare and Ventive Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sakar Healthcare Limited and Ventive Hospitality, you can compare the effects of market volatilities on Sakar Healthcare and Ventive Hospitality 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 Sakar Healthcare with a short position of Ventive Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sakar Healthcare and Ventive Hospitality.

Diversification Opportunities for Sakar Healthcare and Ventive Hospitality

-0.05

Correlation Coefficient

Sakar Healthcare  Ventive Hospitality

Good diversification

The 3 months correlation between Sakar and Ventive is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sakar Healthcare Limited and Ventive Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ventive Hospitality and Sakar Healthcare 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 Sakar Healthcare Limited are associated (or correlated) with Ventive Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ventive Hospitality has no effect on the direction of Sakar Healthcare i.e., Sakar Healthcare and Ventive Hospitality go up and down completely randomly.

Pair Corralation between Sakar Healthcare and Ventive Hospitality

Assuming the 90 days trading horizon Sakar Healthcare Limited is expected to generate 0.95 times more return on investment than Ventive Hospitality. However, Sakar Healthcare Limited is 1.05 times less risky than Ventive Hospitality. It trades about 0.14 of its potential returns per unit of risk. Ventive Hospitality is currently generating about 0.01 per unit of risk. If you would invest  27,975  in Sakar Healthcare Limited on May 6, 2025 and sell it today you would earn a total of  6,105  from holding Sakar Healthcare Limited or generate 21.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sakar Healthcare Limited  vs.  Ventive Hospitality

Sakar Healthcare

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sakar Healthcare Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward-looking signals, Sakar Healthcare displayed solid returns over the last few months and may actually be approaching a breakup point.

Ventive Hospitality

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ventive Hospitality has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Ventive Hospitality is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sakar Healthcare and Ventive Hospitality

The main advantage of trading using opposite Sakar Healthcare and Ventive Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sakar Healthcare position performs unexpectedly, Ventive Hospitality 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 Ventive Hospitality will offset losses from the drop in Ventive Hospitality's long position.

The idea behind Sakar Healthcare Limited and Ventive Hospitality 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.