Correlation Between Lemon Tree and Aster DM
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By analyzing existing cross correlation between Lemon Tree Hotels and Aster DM Healthcare, you can compare the effects of market volatilities on Lemon Tree 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 Lemon Tree with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Aster DM.
Diversification Opportunities for Lemon Tree and Aster DM
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lemon and Aster is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels 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 Lemon Tree 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 Lemon Tree Hotels 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 Lemon Tree i.e., Lemon Tree and Aster DM go up and down completely randomly.
Pair Corralation between Lemon Tree and Aster DM
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to generate 0.77 times more return on investment than Aster DM. However, Lemon Tree Hotels is 1.29 times less risky than Aster DM. It trades about 0.34 of its potential returns per unit of risk. Aster DM Healthcare is currently generating about 0.26 per unit of risk. If you would invest 11,580 in Lemon Tree Hotels on August 31, 2024 and sell it today you would earn a total of 1,410 from holding Lemon Tree Hotels or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Aster DM Healthcare
Performance |
| Timeline |
| Lemon Tree Hotels |
| Aster DM Healthcare |
Lemon Tree and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Aster DM
The main advantage of trading using opposite Lemon Tree and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree 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.| Lemon Tree vs. Gujarat Fluorochemicals Limited | Lemon Tree vs. TECIL Chemicals and | Lemon Tree vs. Fineotex Chemical Limited | Lemon Tree vs. JGCHEMICALS LIMITED |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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