Correlation Between Asian Hotels and Aitken Spence
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By analyzing existing cross correlation between Asian Hotels and and Aitken Spence Hotel, you can compare the effects of market volatilities on Asian Hotels and Aitken Spence 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 Asian Hotels with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Aitken Spence.
Diversification Opportunities for Asian Hotels and Aitken Spence
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asian and Aitken is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels and and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel and Asian 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 Asian Hotels and are associated (or correlated) with Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Asian Hotels i.e., Asian Hotels and Aitken Spence go up and down completely randomly.
Pair Corralation between Asian Hotels and Aitken Spence
Assuming the 90 days trading horizon Asian Hotels is expected to generate 1.84 times less return on investment than Aitken Spence. But when comparing it to its historical volatility, Asian Hotels and is 1.47 times less risky than Aitken Spence. It trades about 0.28 of its potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 6,100 in Aitken Spence Hotel on September 13, 2024 and sell it today you would earn a total of 1,340 from holding Aitken Spence Hotel or generate 21.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels and vs. Aitken Spence Hotel
Performance |
| Timeline |
| Asian Hotels |
| Aitken Spence Hotel |
Asian Hotels and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Aitken Spence
The main advantage of trading using opposite Asian Hotels and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Asian Hotels vs. Jat Holdings PLC | Asian Hotels vs. Lanka Credit and | Asian Hotels vs. VIDULLANKA PLC | Asian Hotels vs. Carson Cumberbatch PLC |
| Aitken Spence vs. Jat Holdings PLC | Aitken Spence vs. Lanka Credit and | Aitken Spence vs. VIDULLANKA PLC | Aitken Spence vs. Carson Cumberbatch PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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