Correlation Between Asian Hotels and Viceroy Hotels
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By analyzing existing cross correlation between Asian Hotels Limited and Viceroy Hotels Limited, you can compare the effects of market volatilities on Asian Hotels and Viceroy 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 Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Viceroy Hotels.
Diversification Opportunities for Asian Hotels and Viceroy Hotels
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asian and Viceroy is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy Hotels 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 Viceroy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viceroy Hotels has no effect on the direction of Asian Hotels i.e., Asian Hotels and Viceroy Hotels go up and down completely randomly.
Pair Corralation between Asian Hotels and Viceroy Hotels
Assuming the 90 days trading horizon Asian Hotels is expected to generate 10.99 times less return on investment than Viceroy Hotels. But when comparing it to its historical volatility, Asian Hotels Limited is 14.99 times less risky than Viceroy Hotels. It trades about 0.07 of its potential returns per unit of risk. Viceroy Hotels Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 185.00 in Viceroy Hotels Limited on August 24, 2024 and sell it today you would earn a total of 13,111 from holding Viceroy Hotels Limited or generate 7087.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Asian Hotels Limited vs. Viceroy Hotels Limited
Performance |
| Timeline |
| Asian Hotels Limited |
| Viceroy Hotels |
Asian Hotels and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Viceroy Hotels
The main advantage of trading using opposite Asian Hotels and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Viceroy 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 Viceroy Hotels will offset losses from the drop in Viceroy 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 |
| Viceroy Hotels vs. Yatharth Hospital Trauma | Viceroy Hotels vs. Landmark Cars Limited | Viceroy Hotels vs. Apollo Hospitals Enterprise | Viceroy Hotels vs. Aster DM Healthcare |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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