Correlation Between Asian Hotels and HCL Technologies
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By analyzing existing cross correlation between Asian Hotels Limited and HCL Technologies Limited, you can compare the effects of market volatilities on Asian Hotels and HCL 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 HCL Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and HCL Technologies.
Diversification Opportunities for Asian Hotels and HCL Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asian and HCL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and HCL Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCL 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 HCL Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCL Technologies has no effect on the direction of Asian Hotels i.e., Asian Hotels and HCL Technologies go up and down completely randomly.
Pair Corralation between Asian Hotels and HCL Technologies
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 2.23 times more return on investment than HCL Technologies. However, Asian Hotels is 2.23 times more volatile than HCL Technologies Limited. It trades about 0.1 of its potential returns per unit of risk. HCL Technologies Limited is currently generating about 0.1 per unit of risk. If you would invest 7,785 in Asian Hotels Limited on October 13, 2024 and sell it today you would earn a total of 20,385 from holding Asian Hotels Limited or generate 261.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. HCL Technologies Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| HCL Technologies |
Asian Hotels and HCL Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and HCL Technologies
The main advantage of trading using opposite Asian Hotels and HCL Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, HCL 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 HCL Technologies will offset losses from the drop in HCL Technologies' long position.| Asian Hotels vs. V2 Retail Limited | Asian Hotels vs. Indian Card Clothing | Asian Hotels vs. Radiant Cash Management | Asian Hotels vs. 21st Century Management |
| HCL Technologies vs. Royal Orchid Hotels | HCL Technologies vs. Dev Information Technology | HCL Technologies vs. Taj GVK Hotels | HCL Technologies vs. Samhi Hotels 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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