Correlation Between Steelcast and Asian Hotels
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By analyzing existing cross correlation between Steelcast Limited and Asian Hotels Limited, you can compare the effects of market volatilities on Steelcast 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 Steelcast with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and Asian Hotels.
Diversification Opportunities for Steelcast and Asian Hotels
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steelcast and Asian is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited 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 Steelcast 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 Steelcast Limited 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 Steelcast i.e., Steelcast and Asian Hotels go up and down completely randomly.
Pair Corralation between Steelcast and Asian Hotels
Assuming the 90 days trading horizon Steelcast is expected to generate 48.17 times less return on investment than Asian Hotels. But when comparing it to its historical volatility, Steelcast Limited is 2.05 times less risky than Asian Hotels. It trades about 0.02 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 19,639 in Asian Hotels Limited on October 11, 2024 and sell it today you would earn a total of 9,951 from holding Asian Hotels Limited or generate 50.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steelcast Limited vs. Asian Hotels Limited
Performance |
| Timeline |
| Steelcast Limited |
| Asian Hotels Limited |
Steelcast and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and Asian Hotels
The main advantage of trading using opposite Steelcast and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast 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.| Steelcast vs. HDFC Asset Management | Steelcast vs. 21st Century Management | Steelcast vs. Radiant Cash Management | Steelcast vs. Kewal Kiran Clothing |
| Asian Hotels vs. Praxis Home Retail | Asian Hotels vs. Hindware Home Innovation | Asian Hotels vs. Kohinoor Foods Limited | Asian Hotels vs. Aban Offshore 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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