Correlation Between Asian Hotels and Blue Coast
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By analyzing existing cross correlation between Asian Hotels Limited and Blue Coast Hotels, you can compare the effects of market volatilities on Asian Hotels and Blue Coast 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 Blue Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Blue Coast.
Diversification Opportunities for Asian Hotels and Blue Coast
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asian and Blue is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels 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 Limited are associated (or correlated) with Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of Asian Hotels i.e., Asian Hotels and Blue Coast go up and down completely randomly.
Pair Corralation between Asian Hotels and Blue Coast
Assuming the 90 days trading horizon Asian Hotels is expected to generate 1147.0 times less return on investment than Blue Coast. In addition to that, Asian Hotels is 1.51 times more volatile than Blue Coast Hotels. It trades about 0.0 of its total potential returns per unit of risk. Blue Coast Hotels is currently generating about 0.13 per unit of volatility. If you would invest 605.00 in Blue Coast Hotels on September 4, 2024 and sell it today you would earn a total of 363.00 from holding Blue Coast Hotels or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.16% |
| Values | Daily Returns |
Asian Hotels Limited vs. Blue Coast Hotels
Performance |
| Timeline |
| Asian Hotels Limited |
| Blue Coast Hotels |
Asian Hotels and Blue Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Blue Coast
The main advantage of trading using opposite Asian Hotels and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Blue Coast 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 Blue Coast will offset losses from the drop in Blue Coast's long position.| Asian Hotels vs. AAA Technologies Limited | Asian Hotels vs. LLOYDS METALS AND | Asian Hotels vs. Unitech Limited | Asian Hotels vs. Sonata Software Limited |
| Blue Coast vs. EIH Associated Hotels | Blue Coast vs. Taj GVK Hotels | Blue Coast vs. Lemon Tree Hotels | Blue Coast vs. Generic Engineering Construction |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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