Correlation Between Shipping and Asian Hotels
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By analyzing existing cross correlation between Shipping and Asian Hotels Limited, you can compare the effects of market volatilities on Shipping 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 Shipping with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and Asian Hotels.
Diversification Opportunities for Shipping and Asian Hotels
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shipping and Asian is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shipping 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 Shipping 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 Shipping 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 Shipping i.e., Shipping and Asian Hotels go up and down completely randomly.
Pair Corralation between Shipping and Asian Hotels
Assuming the 90 days trading horizon Shipping is expected to generate 1.24 times more return on investment than Asian Hotels. However, Shipping is 1.24 times more volatile than Asian Hotels Limited. It trades about 0.17 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.06 per unit of risk. If you would invest 21,328 in Shipping on September 3, 2024 and sell it today you would earn a total of 2,159 from holding Shipping or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shipping vs. Asian Hotels Limited
Performance |
| Timeline |
| Shipping |
| Asian Hotels Limited |
Shipping and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shipping and Asian Hotels
The main advantage of trading using opposite Shipping and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping 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.| Shipping vs. Sintex Plastics Technology | Shipping vs. Shyam Metalics and | Shipping vs. Hilton Metal Forging | Shipping vs. Sonata Software Limited |
| Asian Hotels vs. Bajaj Holdings Investment | Asian Hotels vs. Shipping | Asian Hotels vs. Indo Borax Chemicals | Asian Hotels vs. Kingfa Science Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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