Correlation Between Electrosteel Castings and Asian Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Electrosteel Castings Limited and Asian Hotels Limited, you can compare the effects of market volatilities on Electrosteel Castings 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 Electrosteel Castings with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Asian Hotels.
Diversification Opportunities for Electrosteel Castings and Asian Hotels
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrosteel and Asian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited 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 Electrosteel Castings 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 Electrosteel Castings Limited 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 Electrosteel Castings i.e., Electrosteel Castings and Asian Hotels go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Asian Hotels
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Electrosteel Castings Limited is 1.64 times less risky than Asian Hotels. The stock trades about -0.32 of its potential returns per unit of risk. The Asian Hotels Limited is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 19,639 in Asian Hotels Limited on October 11, 2024 and sell it today you would earn a total of 9,951 from holding Asian Hotels Limited or generate 50.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Asian Hotels Limited
Performance |
| Timeline |
| Electrosteel Castings |
| Asian Hotels Limited |
Electrosteel Castings and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Asian Hotels
The main advantage of trading using opposite Electrosteel Castings and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings 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.| Electrosteel Castings vs. Total Transport Systems | Electrosteel Castings vs. Gujarat Lease Financing | Electrosteel Castings vs. Sunflag Iron And | Electrosteel Castings vs. Kalyani Steels Limited |
| Asian Hotels vs. Praxis Home Retail | Asian Hotels vs. Hindware Home Innovation | Asian Hotels vs. Kohinoor Foods Limited | Asian Hotels vs. Aban Offshore 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |