Correlation Between Asian Hotels and Kamat Hotels
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By analyzing existing cross correlation between Asian Hotels Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on Asian Hotels and Kamat Hotels 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 Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Kamat Hotels.
Diversification Opportunities for Asian Hotels and Kamat Hotels
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asian and Kamat is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels Limited 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 Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Asian Hotels i.e., Asian Hotels and Kamat Hotels go up and down completely randomly.
Pair Corralation between Asian Hotels and Kamat Hotels
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 0.5 times more return on investment than Kamat Hotels. However, Asian Hotels Limited is 1.98 times less risky than Kamat Hotels. It trades about 0.24 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.08 per unit of risk. If you would invest 17,746 in Asian Hotels Limited on August 24, 2024 and sell it today you would earn a total of 2,313 from holding Asian Hotels Limited or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| Kamat Hotels Limited |
Asian Hotels and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Kamat Hotels
The main advantage of trading using opposite Asian Hotels and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Kamat Hotels 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| Asian Hotels vs. JGCHEMICALS LIMITED | Asian Hotels vs. Dhunseri Investments Limited | Asian Hotels vs. Mangalore Chemicals Fertilizers | Asian Hotels vs. Allied Blenders Distillers |
| Kamat Hotels vs. Reliance Industries Limited | Kamat Hotels vs. Indian Oil | Kamat Hotels vs. HDFC Bank Limited | Kamat Hotels vs. Divis Laboratories 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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