Correlation Between Hilton Metal and Asian Hotels
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By analyzing existing cross correlation between Hilton Metal Forging and Asian Hotels Limited, you can compare the effects of market volatilities on Hilton Metal 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 Hilton Metal with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Metal and Asian Hotels.
Diversification Opportunities for Hilton Metal and Asian Hotels
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hilton and Asian is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Metal Forging 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 Hilton Metal 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 Hilton Metal Forging 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 Hilton Metal i.e., Hilton Metal and Asian Hotels go up and down completely randomly.
Pair Corralation between Hilton Metal and Asian Hotels
Assuming the 90 days trading horizon Hilton Metal Forging is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Hilton Metal Forging is 1.23 times less risky than Asian Hotels. The stock trades about -0.19 of its potential returns per unit of risk. The Asian Hotels Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 19,551 in Asian Hotels Limited on September 2, 2024 and sell it today you would earn a total of 453.00 from holding Asian Hotels Limited or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Metal Forging vs. Asian Hotels Limited
Performance |
| Timeline |
| Hilton Metal Forging |
| Asian Hotels Limited |
Hilton Metal and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Metal and Asian Hotels
The main advantage of trading using opposite Hilton Metal and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Metal 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.| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Life Insurance | Hilton Metal vs. Indian Oil | Hilton Metal vs. Oil Natural Gas |
| Asian Hotels vs. Indian Railway Finance | Asian Hotels vs. Cholamandalam Financial Holdings | Asian Hotels vs. Reliance Industries Limited | Asian Hotels vs. Tata Consultancy Services |
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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