Correlation Between Asian Hotels and Carson Cumberbatch
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By analyzing existing cross correlation between Asian Hotels and and Carson Cumberbatch PLC, you can compare the effects of market volatilities on Asian Hotels and Carson Cumberbatch 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 Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Carson Cumberbatch.
Diversification Opportunities for Asian Hotels and Carson Cumberbatch
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asian and Carson is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels and and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch PLC 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 Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of Asian Hotels i.e., Asian Hotels and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between Asian Hotels and Carson Cumberbatch
Assuming the 90 days trading horizon Asian Hotels and is expected to generate 1.04 times more return on investment than Carson Cumberbatch. However, Asian Hotels is 1.04 times more volatile than Carson Cumberbatch PLC. It trades about 0.33 of its potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.3 per unit of risk. If you would invest 5,420 in Asian Hotels and on September 12, 2024 and sell it today you would earn a total of 710.00 from holding Asian Hotels and or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels and vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| Asian Hotels |
| Carson Cumberbatch PLC |
Asian Hotels and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Carson Cumberbatch
The main advantage of trading using opposite Asian Hotels and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch'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 |
| Carson Cumberbatch vs. John Keells Hotels | Carson Cumberbatch vs. Lighthouse Hotel PLC | Carson Cumberbatch vs. Ceylon Beverage Holdings | Carson Cumberbatch vs. Galadari Hotels Lanka |
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.
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