Correlation Between Oracle Financial and Asian Hotels
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By analyzing existing cross correlation between Oracle Financial Services and Asian Hotels Limited, you can compare the effects of market volatilities on Oracle Financial 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 Oracle Financial with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle Financial and Asian Hotels.
Diversification Opportunities for Oracle Financial and Asian Hotels
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oracle and Asian is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Oracle Financial Services 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 Oracle Financial 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 Oracle Financial Services 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 Oracle Financial i.e., Oracle Financial and Asian Hotels go up and down completely randomly.
Pair Corralation between Oracle Financial and Asian Hotels
Assuming the 90 days trading horizon Oracle Financial Services is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Oracle Financial Services is 1.63 times less risky than Asian Hotels. The stock trades about -0.58 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 29,071 in Asian Hotels Limited on October 28, 2024 and sell it today you would earn a total of 984.00 from holding Asian Hotels Limited or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle Financial Services vs. Asian Hotels Limited
Performance |
| Timeline |
| Oracle Financial Services |
| Asian Hotels Limited |
Oracle Financial and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle Financial and Asian Hotels
The main advantage of trading using opposite Oracle Financial and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle Financial 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.| Oracle Financial vs. Transport of | Oracle Financial vs. Praxis Home Retail | Oracle Financial vs. Oriental Hotels Limited | Oracle Financial vs. V Mart Retail Limited |
| Asian Hotels vs. State Bank of | Asian Hotels vs. Life Insurance | Asian Hotels vs. HDFC Bank Limited | Asian Hotels vs. ICICI Bank 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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