Correlation Between Asian Hotels and Embassy Office
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By analyzing existing cross correlation between Asian Hotels Limited and Embassy Office Parks, you can compare the effects of market volatilities on Asian Hotels and Embassy Office 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 Embassy Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Embassy Office.
Diversification Opportunities for Asian Hotels and Embassy Office
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asian and Embassy is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Embassy Office Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Office Parks 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 Embassy Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Office Parks has no effect on the direction of Asian Hotels i.e., Asian Hotels and Embassy Office go up and down completely randomly.
Pair Corralation between Asian Hotels and Embassy Office
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 2.08 times more return on investment than Embassy Office. However, Asian Hotels is 2.08 times more volatile than Embassy Office Parks. It trades about 0.16 of its potential returns per unit of risk. Embassy Office Parks is currently generating about -0.28 per unit of risk. If you would invest 18,449 in Asian Hotels Limited on August 28, 2024 and sell it today you would earn a total of 1,303 from holding Asian Hotels Limited or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. Embassy Office Parks
Performance |
| Timeline |
| Asian Hotels Limited |
| Embassy Office Parks |
Asian Hotels and Embassy Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Embassy Office
The main advantage of trading using opposite Asian Hotels and Embassy Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Embassy Office 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 Embassy Office will offset losses from the drop in Embassy Office's long position.| Asian Hotels vs. Sanginita Chemicals Limited | Asian Hotels vs. Neogen Chemicals Limited | Asian Hotels vs. Newgen Software Technologies | Asian Hotels vs. Gujarat Fluorochemicals Limited |
| Embassy Office vs. NMDC Limited | Embassy Office vs. Steel Authority of | Embassy Office vs. Gujarat Narmada Valley | Embassy Office vs. Gujarat Alkalies and |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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