Correlation Between Shigan Quantum and Asian Hotels
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By analyzing existing cross correlation between Shigan Quantum Tech and Asian Hotels Limited, you can compare the effects of market volatilities on Shigan Quantum 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 Shigan Quantum with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shigan Quantum and Asian Hotels.
Diversification Opportunities for Shigan Quantum and Asian Hotels
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shigan and Asian is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shigan Quantum Tech 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 Shigan Quantum 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 Shigan Quantum Tech 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 Shigan Quantum i.e., Shigan Quantum and Asian Hotels go up and down completely randomly.
Pair Corralation between Shigan Quantum and Asian Hotels
Assuming the 90 days trading horizon Shigan Quantum Tech is expected to generate 1.54 times more return on investment than Asian Hotels. However, Shigan Quantum is 1.54 times more volatile than Asian Hotels Limited. It trades about 0.04 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.03 per unit of risk. If you would invest 11,800 in Shigan Quantum Tech on August 28, 2024 and sell it today you would earn a total of 260.00 from holding Shigan Quantum Tech or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 10.24% |
| Values | Daily Returns |
Shigan Quantum Tech vs. Asian Hotels Limited
Performance |
| Timeline |
| Shigan Quantum Tech |
| Asian Hotels Limited |
Shigan Quantum and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shigan Quantum and Asian Hotels
The main advantage of trading using opposite Shigan Quantum and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shigan Quantum 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.| Shigan Quantum vs. Reliance Industries Limited | Shigan Quantum vs. Tata Consultancy Services | Shigan Quantum vs. HDFC Bank Limited | Shigan Quantum vs. Bharti Airtel Limited |
| Asian Hotels vs. Sanginita Chemicals Limited | Asian Hotels vs. Neogen Chemicals Limited | Asian Hotels vs. Newgen Software Technologies | Asian Hotels vs. Gujarat Fluorochemicals 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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