Correlation Between Asian Hotels and GACM Technologies
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By analyzing existing cross correlation between Asian Hotels Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Asian Hotels and GACM Technologies 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 GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and GACM Technologies.
Diversification Opportunities for Asian Hotels and GACM Technologies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asian and GACM is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies 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 GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of Asian Hotels i.e., Asian Hotels and GACM Technologies go up and down completely randomly.
Pair Corralation between Asian Hotels and GACM Technologies
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 0.96 times more return on investment than GACM Technologies. However, Asian Hotels Limited is 1.04 times less risky than GACM Technologies. It trades about 0.12 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.19 per unit of risk. If you would invest 7,230 in Asian Hotels Limited on November 19, 2024 and sell it today you would earn a total of 29,070 from holding Asian Hotels Limited or generate 402.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.23% |
| Values | Daily Returns |
Asian Hotels Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| GACM Technologies |
Asian Hotels and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and GACM Technologies
The main advantage of trading using opposite Asian Hotels and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, GACM Technologies 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.| Asian Hotels vs. Tata Investment | Asian Hotels vs. R S Software | Asian Hotels vs. POWERGRID Infrastructure Investment | Asian Hotels vs. Varun Beverages Limited |
| GACM Technologies vs. Vidhi Specialty Food | GACM Technologies vs. Tata Investment | GACM Technologies vs. Foods Inns Limited | GACM Technologies vs. Mask Investments 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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