Correlation Between Radiant Cash and Asian Hotels
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By analyzing existing cross correlation between Radiant Cash Management and Asian Hotels Limited, you can compare the effects of market volatilities on Radiant Cash 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 Radiant Cash with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radiant Cash and Asian Hotels.
Diversification Opportunities for Radiant Cash and Asian Hotels
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Radiant and Asian is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Cash Management 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 Radiant Cash 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 Radiant Cash Management 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 Radiant Cash i.e., Radiant Cash and Asian Hotels go up and down completely randomly.
Pair Corralation between Radiant Cash and Asian Hotels
Assuming the 90 days trading horizon Radiant Cash Management is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Radiant Cash Management is 8.01 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 0.41 of returns per unit of risk over similar time horizon. If you would invest 19,253 in Asian Hotels Limited on October 13, 2024 and sell it today you would earn a total of 8,917 from holding Asian Hotels Limited or generate 46.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Radiant Cash Management vs. Asian Hotels Limited
Performance |
| Timeline |
| Radiant Cash Management |
| Asian Hotels Limited |
Radiant Cash and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radiant Cash and Asian Hotels
The main advantage of trading using opposite Radiant Cash and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radiant Cash 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.| Radiant Cash vs. Manaksia Steels Limited | Radiant Cash vs. Parag Milk Foods | Radiant Cash vs. Univa Foods Limited | Radiant Cash vs. Kohinoor Foods Limited |
| Asian Hotels vs. V2 Retail Limited | Asian Hotels vs. Indian Card Clothing | Asian Hotels vs. Radiant Cash Management | Asian Hotels vs. 21st Century Management |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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