Correlation Between Aster DM and Home First
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By analyzing existing cross correlation between Aster DM Healthcare and Home First Finance, you can compare the effects of market volatilities on Aster DM and Home First 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 Home First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and Home First.
Diversification Opportunities for Aster DM and Home First
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aster and Home is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare and Home First Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home First Finance 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 Home First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home First Finance has no effect on the direction of Aster DM i.e., Aster DM and Home First go up and down completely randomly.
Pair Corralation between Aster DM and Home First
Assuming the 90 days trading horizon Aster DM Healthcare is expected to generate 0.94 times more return on investment than Home First. However, Aster DM Healthcare is 1.07 times less risky than Home First. It trades about 0.28 of its potential returns per unit of risk. Home First Finance is currently generating about -0.13 per unit of risk. If you would invest 43,890 in Aster DM Healthcare on September 4, 2024 and sell it today you would earn a total of 5,665 from holding Aster DM Healthcare or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aster DM Healthcare vs. Home First Finance
Performance |
| Timeline |
| Aster DM Healthcare |
| Home First Finance |
Aster DM and Home First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and Home First
The main advantage of trading using opposite Aster DM and Home First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM position performs unexpectedly, Home First 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 Home First will offset losses from the drop in Home First's long position.| Aster DM vs. Hi Tech Pipes Limited | Aster DM vs. Melstar Information Technologies | Aster DM vs. Iris Clothings Limited | Aster DM vs. Tata Communications Limited |
| Home First vs. Silly Monks Entertainment | Home First vs. Aban Offshore Limited | Home First vs. Modi Rubber Limited | Home First vs. Kewal Kiran Clothing |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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