Correlation Between Asian Hotels and UCO Bank
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By analyzing existing cross correlation between Asian Hotels Limited and UCO Bank, you can compare the effects of market volatilities on Asian Hotels and UCO 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 UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and UCO Bank.
Diversification Opportunities for Asian Hotels and UCO Bank
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asian and UCO is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO 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 UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of Asian Hotels i.e., Asian Hotels and UCO Bank go up and down completely randomly.
Pair Corralation between Asian Hotels and UCO Bank
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 0.7 times more return on investment than UCO Bank. However, Asian Hotels Limited is 1.43 times less risky than UCO Bank. It trades about 0.07 of its potential returns per unit of risk. UCO Bank is currently generating about -0.01 per unit of risk. If you would invest 32,865 in Asian Hotels Limited on November 2, 2024 and sell it today you would earn a total of 1,365 from holding Asian Hotels Limited or generate 4.15% 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. UCO Bank
Performance |
| Timeline |
| Asian Hotels Limited |
| UCO Bank |
Asian Hotels and UCO Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and UCO Bank
The main advantage of trading using opposite Asian Hotels and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, UCO 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 UCO Bank will offset losses from the drop in UCO Bank's long position.| Asian Hotels vs. Navneet Education Limited | Asian Hotels vs. Mtar Technologies Limited | Asian Hotels vs. AVALON TECHNOLOGIES LTD | Asian Hotels vs. PNC Infratech Limited |
| UCO Bank vs. Vardhman Special Steels | UCO Bank vs. Rama Steel Tubes | UCO Bank vs. Electrosteel Castings Limited | UCO Bank vs. Visa Steel 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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