Correlation Between Aster DM and Asian Hotels
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By analyzing existing cross correlation between Aster DM Healthcare and Asian Hotels Limited, you can compare the effects of market volatilities on Aster DM and Asian 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 Aster DM with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and Asian Hotels.
Diversification Opportunities for Aster DM and Asian Hotels
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aster and Asian is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare and Asian Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels Limited and Aster DM 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 Aster DM Healthcare are associated (or correlated) with Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels Limited has no effect on the direction of Aster DM i.e., Aster DM and Asian Hotels go up and down completely randomly.
Pair Corralation between Aster DM and Asian Hotels
Assuming the 90 days trading horizon Aster DM Healthcare is expected to generate 1.01 times more return on investment than Asian Hotels. However, Aster DM is 1.01 times more volatile than Asian Hotels Limited. It trades about 0.26 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about -0.07 per unit of risk. If you would invest 43,770 in Aster DM Healthcare on August 31, 2024 and sell it today you would earn a total of 5,100 from holding Aster DM Healthcare or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aster DM Healthcare vs. Asian Hotels Limited
Performance |
| Timeline |
| Aster DM Healthcare |
| Asian Hotels Limited |
Aster DM and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and Asian Hotels
The main advantage of trading using opposite Aster DM and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM position performs unexpectedly, Asian 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| Aster DM vs. Nucleus Software Exports | Aster DM vs. Teamlease Services Limited | Aster DM vs. Ortel Communications Limited | Aster DM vs. Elin Electronics Limited |
| Asian Hotels vs. PYRAMID TECHNOPLAST ORD | Asian Hotels vs. Palred Technologies Limited | Asian Hotels vs. FCS Software Solutions | Asian Hotels vs. 63 moons technologies |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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