Correlation Between Asian Hotels and Elin Electronics
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By analyzing existing cross correlation between Asian Hotels Limited and Elin Electronics Limited, you can compare the effects of market volatilities on Asian Hotels and Elin Electronics 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 Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Elin Electronics.
Diversification Opportunities for Asian Hotels and Elin Electronics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asian and Elin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics 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 Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Asian Hotels i.e., Asian Hotels and Elin Electronics go up and down completely randomly.
Pair Corralation between Asian Hotels and Elin Electronics
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 1.12 times more return on investment than Elin Electronics. However, Asian Hotels is 1.12 times more volatile than Elin Electronics Limited. It trades about 0.12 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about 0.02 per unit of risk. If you would invest 7,355 in Asian Hotels Limited on November 1, 2024 and sell it today you would earn a total of 26,875 from holding Asian Hotels Limited or generate 365.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asian Hotels Limited vs. Elin Electronics Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| Elin Electronics |
Asian Hotels and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Elin Electronics
The main advantage of trading using opposite Asian Hotels and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Elin Electronics 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.| Asian Hotels vs. Fortis Healthcare Limited | Asian Hotels vs. Zydus Wellness Limited | Asian Hotels vs. Amrutanjan Health Care | Asian Hotels vs. Shyam Metalics and |
| Elin Electronics vs. Kingfa Science Technology | Elin Electronics vs. Rico Auto Industries | Elin Electronics vs. GACM Technologies Limited | Elin Electronics vs. COSMO FIRST 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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