Correlation Between Hi Tech and Aster DM
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By analyzing existing cross correlation between Hi Tech Pipes Limited and Aster DM Healthcare, you can compare the effects of market volatilities on Hi Tech and Aster DM 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 Hi Tech with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Tech and Aster DM.
Diversification Opportunities for Hi Tech and Aster DM
Excellent diversification
The 3 months correlation between HITECH and Aster is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hi Tech Pipes Limited and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare and Hi Tech 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 Hi Tech Pipes Limited are associated (or correlated) with Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of Hi Tech i.e., Hi Tech and Aster DM go up and down completely randomly.
Pair Corralation between Hi Tech and Aster DM
Assuming the 90 days trading horizon Hi Tech Pipes Limited is expected to under-perform the Aster DM. But the stock apears to be less risky and, when comparing its historical volatility, Hi Tech Pipes Limited is 1.09 times less risky than Aster DM. The stock trades about -0.06 of its potential returns per unit of risk. The Aster DM Healthcare is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 43,850 in Aster DM Healthcare on September 12, 2024 and sell it today you would earn a total of 5,055 from holding Aster DM Healthcare or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Tech Pipes Limited vs. Aster DM Healthcare
Performance |
| Timeline |
| Hi Tech Pipes |
| Aster DM Healthcare |
Hi Tech and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Tech and Aster DM
The main advantage of trading using opposite Hi Tech and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Tech position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| Hi Tech vs. Steel Authority of | Hi Tech vs. Embassy Office Parks | Hi Tech vs. Indian Metals Ferro | Hi Tech vs. JTL Industries |
| Aster DM vs. Reliance Industries Limited | Aster DM vs. Tata Consultancy Services | Aster DM vs. HDFC Bank Limited | Aster DM vs. Bharti Airtel 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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