Correlation Between Aster DM and Power Finance
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By analyzing existing cross correlation between Aster DM Healthcare and Power Finance, you can compare the effects of market volatilities on Aster DM and Power Finance 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 Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and Power Finance.
Diversification Opportunities for Aster DM and Power Finance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aster and Power is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power 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 Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of Aster DM i.e., Aster DM and Power Finance go up and down completely randomly.
Pair Corralation between Aster DM and Power Finance
Assuming the 90 days trading horizon Aster DM Healthcare is expected to generate 0.42 times more return on investment than Power Finance. However, Aster DM Healthcare is 2.4 times less risky than Power Finance. It trades about -0.19 of its potential returns per unit of risk. Power Finance is currently generating about -0.12 per unit of risk. If you would invest 51,905 in Aster DM Healthcare on October 29, 2024 and sell it today you would lose (2,295) from holding Aster DM Healthcare or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aster DM Healthcare vs. Power Finance
Performance |
| Timeline |
| Aster DM Healthcare |
| Power Finance |
Aster DM and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and Power Finance
The main advantage of trading using opposite Aster DM and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance's long position.| Aster DM vs. General Insurance | Aster DM vs. Electronics Mart India | Aster DM vs. Punjab National Bank | Aster DM vs. Arman Financial Services |
| Power Finance vs. Parag Milk Foods | Power Finance vs. Patanjali Foods Limited | Power Finance vs. Compucom Software Limited | Power Finance vs. R S Software |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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