Correlation Between SINCLAIRS HOTELS and Asian Hotels
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By analyzing existing cross correlation between SINCLAIRS HOTELS ORD and Asian Hotels Limited, you can compare the effects of market volatilities on SINCLAIRS HOTELS 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 SINCLAIRS HOTELS with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINCLAIRS HOTELS and Asian Hotels.
Diversification Opportunities for SINCLAIRS HOTELS and Asian Hotels
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SINCLAIRS and Asian is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS 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 SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS i.e., SINCLAIRS HOTELS and Asian Hotels go up and down completely randomly.
Pair Corralation between SINCLAIRS HOTELS and Asian Hotels
Assuming the 90 days trading horizon SINCLAIRS HOTELS ORD is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, SINCLAIRS HOTELS ORD is 1.55 times less risky than Asian Hotels. The stock trades about -0.13 of its potential returns per unit of risk. The Asian Hotels Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,090 in Asian Hotels Limited on August 24, 2024 and sell it today you would earn a total of 10,969 from holding Asian Hotels Limited or generate 120.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.49% |
| Values | Daily Returns |
SINCLAIRS HOTELS ORD vs. Asian Hotels Limited
Performance |
| Timeline |
| SINCLAIRS HOTELS ORD |
| Asian Hotels Limited |
SINCLAIRS HOTELS and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINCLAIRS HOTELS and Asian Hotels
The main advantage of trading using opposite SINCLAIRS HOTELS and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINCLAIRS HOTELS 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.| SINCLAIRS HOTELS vs. The Indian Hotels | SINCLAIRS HOTELS vs. Chalet Hotels Limited | SINCLAIRS HOTELS vs. Lemon Tree Hotels | SINCLAIRS HOTELS vs. Juniper Hotels |
| Asian Hotels vs. JGCHEMICALS LIMITED | Asian Hotels vs. Dhunseri Investments Limited | Asian Hotels vs. Mangalore Chemicals Fertilizers | Asian Hotels vs. Allied Blenders Distillers |
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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