Correlation Between AAA Technologies and Asian Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between AAA Technologies Limited and Asian Hotels Limited, you can compare the effects of market volatilities on AAA Technologies and Asian 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 AAA Technologies with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAA Technologies and Asian Hotels.
Diversification Opportunities for AAA Technologies and Asian Hotels
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAA and Asian is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AAA Technologies Limited and Asian Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels Limited and AAA Technologies 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 AAA Technologies Limited are associated (or correlated) with Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels Limited has no effect on the direction of AAA Technologies i.e., AAA Technologies and Asian Hotels go up and down completely randomly.
Pair Corralation between AAA Technologies and Asian Hotels
Assuming the 90 days trading horizon AAA Technologies Limited is expected to generate 0.62 times more return on investment than Asian Hotels. However, AAA Technologies Limited is 1.62 times less risky than Asian Hotels. It trades about 0.04 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.01 per unit of risk. If you would invest 11,407 in AAA Technologies Limited on September 12, 2024 and sell it today you would earn a total of 164.00 from holding AAA Technologies Limited or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAA Technologies Limited vs. Asian Hotels Limited
Performance |
| Timeline |
| AAA Technologies |
| Asian Hotels Limited |
AAA Technologies and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAA Technologies and Asian Hotels
The main advantage of trading using opposite AAA Technologies and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAA Technologies position performs unexpectedly, Asian 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| AAA Technologies vs. Reliance Industries Limited | AAA Technologies vs. Oil Natural Gas | AAA Technologies vs. Indian Oil | AAA Technologies vs. HDFC Bank Limited |
| Asian Hotels vs. Hemisphere Properties India | Asian Hotels vs. Indo Borax Chemicals | Asian Hotels vs. Kingfa Science Technology | Asian Hotels vs. Alkali Metals 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |