Correlation Between EMBASSY OFFICE and Asian Hotels
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By analyzing existing cross correlation between EMBASSY OFFICE PARKS and Asian Hotels Limited, you can compare the effects of market volatilities on EMBASSY OFFICE 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 EMBASSY OFFICE with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBASSY OFFICE and Asian Hotels.
Diversification Opportunities for EMBASSY OFFICE and Asian Hotels
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EMBASSY and Asian is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding EMBASSY OFFICE PARKS 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 EMBASSY OFFICE 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 EMBASSY OFFICE PARKS 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 EMBASSY OFFICE i.e., EMBASSY OFFICE and Asian Hotels go up and down completely randomly.
Pair Corralation between EMBASSY OFFICE and Asian Hotels
Assuming the 90 days trading horizon EMBASSY OFFICE PARKS is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, EMBASSY OFFICE PARKS is 1.99 times less risky than Asian Hotels. The stock trades about -0.15 of its potential returns per unit of risk. The Asian Hotels Limited is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 17,746 in Asian Hotels Limited on August 24, 2024 and sell it today you would earn a total of 2,313 from holding Asian Hotels Limited or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
EMBASSY OFFICE PARKS vs. Asian Hotels Limited
Performance |
| Timeline |
| EMBASSY OFFICE PARKS |
| Asian Hotels Limited |
EMBASSY OFFICE and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBASSY OFFICE and Asian Hotels
The main advantage of trading using opposite EMBASSY OFFICE and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBASSY OFFICE 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.| EMBASSY OFFICE vs. NMDC Limited | EMBASSY OFFICE vs. Steel Authority of | EMBASSY OFFICE vs. Embassy Office Parks | EMBASSY OFFICE vs. Gujarat Narmada Valley |
| Asian Hotels vs. JGCHEMICALS LIMITED | Asian Hotels vs. Dhunseri Investments Limited | Asian Hotels vs. Mangalore Chemicals Fertilizers | Asian Hotels vs. Allied Blenders Distillers |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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