Correlation Between Asian Hotels and TPL Plastech
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By analyzing existing cross correlation between Asian Hotels Limited and TPL Plastech Limited, you can compare the effects of market volatilities on Asian Hotels and TPL Plastech 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 TPL Plastech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and TPL Plastech.
Diversification Opportunities for Asian Hotels and TPL Plastech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asian and TPL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and TPL Plastech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPL Plastech 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 TPL Plastech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPL Plastech Limited has no effect on the direction of Asian Hotels i.e., Asian Hotels and TPL Plastech go up and down completely randomly.
Pair Corralation between Asian Hotels and TPL Plastech
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 1.31 times more return on investment than TPL Plastech. However, Asian Hotels is 1.31 times more volatile than TPL Plastech Limited. It trades about 0.29 of its potential returns per unit of risk. TPL Plastech Limited is currently generating about -0.13 per unit of risk. If you would invest 23,972 in Asian Hotels Limited on October 22, 2024 and sell it today you would earn a total of 5,948 from holding Asian Hotels Limited or generate 24.81% 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. TPL Plastech Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| TPL Plastech Limited |
Asian Hotels and TPL Plastech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and TPL Plastech
The main advantage of trading using opposite Asian Hotels and TPL Plastech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, TPL Plastech 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 TPL Plastech will offset losses from the drop in TPL Plastech's long position.| Asian Hotels vs. One 97 Communications | Asian Hotels vs. Iris Clothings Limited | Asian Hotels vs. UTI Asset Management | Asian Hotels vs. Tata Communications Limited |
| TPL Plastech vs. Blue Coast Hotels | TPL Plastech vs. Reliance Communications Limited | TPL Plastech vs. Taj GVK Hotels | TPL Plastech vs. SINCLAIRS HOTELS ORD |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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