Correlation Between Asian Hotels and Gujarat Lease
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By analyzing existing cross correlation between Asian Hotels Limited and Gujarat Lease Financing, you can compare the effects of market volatilities on Asian Hotels and Gujarat Lease 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 Gujarat Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Gujarat Lease.
Diversification Opportunities for Asian Hotels and Gujarat Lease
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asian and Gujarat is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Gujarat Lease Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Lease Financing 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 Gujarat Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Lease Financing has no effect on the direction of Asian Hotels i.e., Asian Hotels and Gujarat Lease go up and down completely randomly.
Pair Corralation between Asian Hotels and Gujarat Lease
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 1.13 times more return on investment than Gujarat Lease. However, Asian Hotels is 1.13 times more volatile than Gujarat Lease Financing. It trades about 0.17 of its potential returns per unit of risk. Gujarat Lease Financing is currently generating about 0.03 per unit of risk. If you would invest 27,687 in Asian Hotels Limited on October 26, 2024 and sell it today you would earn a total of 3,083 from holding Asian Hotels Limited or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. Gujarat Lease Financing
Performance |
| Timeline |
| Asian Hotels Limited |
| Gujarat Lease Financing |
Asian Hotels and Gujarat Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Gujarat Lease
The main advantage of trading using opposite Asian Hotels and Gujarat Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Gujarat Lease 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 Gujarat Lease will offset losses from the drop in Gujarat Lease's long position.| Asian Hotels vs. Bombay Burmah Trading | Asian Hotels vs. Bajaj Holdings Investment | Asian Hotels vs. United Drilling Tools | Asian Hotels vs. Tera Software Limited |
| Gujarat Lease vs. Tata Investment | Gujarat Lease vs. Indian Card Clothing | Gujarat Lease vs. Zodiac Clothing | Gujarat Lease vs. Clean Science 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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