Correlation Between Kamat Hotels and Aster DM
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By analyzing existing cross correlation between Kamat Hotels Limited and Aster DM Healthcare, you can compare the effects of market volatilities on Kamat Hotels 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 Kamat Hotels with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and Aster DM.
Diversification Opportunities for Kamat Hotels and Aster DM
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kamat and Aster is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels 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 Kamat Hotels 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 Kamat Hotels 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 Kamat Hotels i.e., Kamat Hotels and Aster DM go up and down completely randomly.
Pair Corralation between Kamat Hotels and Aster DM
Assuming the 90 days trading horizon Kamat Hotels is expected to generate 14.47 times less return on investment than Aster DM. In addition to that, Kamat Hotels is 1.17 times more volatile than Aster DM Healthcare. It trades about 0.02 of its total potential returns per unit of risk. Aster DM Healthcare is currently generating about 0.26 per unit of volatility. If you would invest 43,770 in Aster DM Healthcare on August 31, 2024 and sell it today you would earn a total of 5,100 from holding Aster DM Healthcare or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. Aster DM Healthcare
Performance |
| Timeline |
| Kamat Hotels Limited |
| Aster DM Healthcare |
Kamat Hotels and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and Aster DM
The main advantage of trading using opposite Kamat Hotels and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels 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.| Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. GTL Limited | Kamat Hotels vs. Indo Amines Limited | Kamat Hotels vs. HDFC Mutual Fund |
| Aster DM vs. Nucleus Software Exports | Aster DM vs. Teamlease Services Limited | Aster DM vs. Ortel Communications Limited | Aster DM vs. Elin Electronics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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