Correlation Between Asian Hotels and Karnataka Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Asian Hotels Limited and The Karnataka Bank, you can compare the effects of market volatilities on Asian Hotels and Karnataka Bank 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 Karnataka Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Karnataka Bank.
Diversification Opportunities for Asian Hotels and Karnataka Bank
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asian and Karnataka is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and The Karnataka Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karnataka Bank 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 Karnataka Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karnataka Bank has no effect on the direction of Asian Hotels i.e., Asian Hotels and Karnataka Bank go up and down completely randomly.
Pair Corralation between Asian Hotels and Karnataka Bank
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 1.29 times more return on investment than Karnataka Bank. However, Asian Hotels is 1.29 times more volatile than The Karnataka Bank. It trades about 0.08 of its potential returns per unit of risk. The Karnataka Bank is currently generating about 0.07 per unit of risk. If you would invest 7,325 in Asian Hotels Limited on September 13, 2024 and sell it today you would earn a total of 12,403 from holding Asian Hotels Limited or generate 169.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asian Hotels Limited vs. The Karnataka Bank
Performance |
| Timeline |
| Asian Hotels Limited |
| Karnataka Bank |
Asian Hotels and Karnataka Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Karnataka Bank
The main advantage of trading using opposite Asian Hotels and Karnataka Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Karnataka Bank 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 Karnataka Bank will offset losses from the drop in Karnataka Bank's long position.| Asian Hotels vs. Indian Railway Finance | Asian Hotels vs. Cholamandalam Financial Holdings | Asian Hotels vs. Reliance Industries Limited | Asian Hotels vs. Tata Consultancy Services |
| Karnataka Bank vs. Asian Hotels Limited | Karnataka Bank vs. Kamat Hotels Limited | Karnataka Bank vs. OnMobile Global Limited | Karnataka Bank vs. Tata Communications 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |