Correlation Between Asian Hotels and Prakash Steelage
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By analyzing existing cross correlation between Asian Hotels Limited and Prakash Steelage Limited, you can compare the effects of market volatilities on Asian Hotels and Prakash Steelage 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 Prakash Steelage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Prakash Steelage.
Diversification Opportunities for Asian Hotels and Prakash Steelage
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asian and Prakash is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Prakash Steelage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prakash Steelage 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 Prakash Steelage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prakash Steelage has no effect on the direction of Asian Hotels i.e., Asian Hotels and Prakash Steelage go up and down completely randomly.
Pair Corralation between Asian Hotels and Prakash Steelage
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 0.96 times more return on investment than Prakash Steelage. However, Asian Hotels Limited is 1.05 times less risky than Prakash Steelage. It trades about 0.1 of its potential returns per unit of risk. Prakash Steelage Limited is currently generating about 0.05 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 Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asian Hotels Limited vs. Prakash Steelage Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| Prakash Steelage |
Asian Hotels and Prakash Steelage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Prakash Steelage
The main advantage of trading using opposite Asian Hotels and Prakash Steelage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Prakash Steelage 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 Prakash Steelage will offset losses from the drop in Prakash Steelage's 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 |
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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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