Correlation Between Aster DM and Viceroy Hotels
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By analyzing existing cross correlation between Aster DM Healthcare and Viceroy Hotels Limited, you can compare the effects of market volatilities on Aster DM 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 Aster DM with a short position of Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and Viceroy Hotels.
Diversification Opportunities for Aster DM and Viceroy Hotels
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aster and Viceroy is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy Hotels 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 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 Aster DM i.e., Aster DM and Viceroy Hotels go up and down completely randomly.
Pair Corralation between Aster DM and Viceroy Hotels
Assuming the 90 days trading horizon Aster DM is expected to generate 9.91 times less return on investment than Viceroy Hotels. But when comparing it to its historical volatility, Aster DM Healthcare is 16.13 times less risky than Viceroy Hotels. It trades about 0.08 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 195.00 in Viceroy Hotels Limited on August 28, 2024 and sell it today you would earn a total of 12,800 from holding Viceroy Hotels Limited or generate 6564.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.14% |
| Values | Daily Returns |
Aster DM Healthcare vs. Viceroy Hotels Limited
Performance |
| Timeline |
| Aster DM Healthcare |
| Viceroy Hotels |
Aster DM and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and Viceroy Hotels
The main advantage of trading using opposite Aster DM and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM 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.| Aster DM vs. Indian Railway Finance | Aster DM vs. Cholamandalam Financial Holdings | Aster DM vs. Reliance Industries Limited | Aster DM vs. Tata Consultancy Services |
| Viceroy Hotels vs. MMTC Limited | Viceroy Hotels vs. Kingfa Science Technology | Viceroy Hotels vs. Rico Auto Industries | Viceroy Hotels vs. GACM Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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