Correlation Between Taj GVK and Asian Hotels
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By analyzing existing cross correlation between Taj GVK Hotels and Asian Hotels Limited, you can compare the effects of market volatilities on Taj GVK 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 Taj GVK with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and Asian Hotels.
Diversification Opportunities for Taj GVK and Asian Hotels
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taj and Asian is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels 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 Taj GVK 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 Taj GVK Hotels 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 Taj GVK i.e., Taj GVK and Asian Hotels go up and down completely randomly.
Pair Corralation between Taj GVK and Asian Hotels
Assuming the 90 days trading horizon Taj GVK Hotels is expected to generate 1.16 times more return on investment than Asian Hotels. However, Taj GVK is 1.16 times more volatile than Asian Hotels Limited. It trades about 0.06 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 25,521 in Taj GVK Hotels on August 28, 2024 and sell it today you would earn a total of 8,389 from holding Taj GVK Hotels or generate 32.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Taj GVK Hotels vs. Asian Hotels Limited
Performance |
| Timeline |
| Taj GVK Hotels |
| Asian Hotels Limited |
Taj GVK and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and Asian Hotels
The main advantage of trading using opposite Taj GVK and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK 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.| Taj GVK vs. MMTC Limited | Taj GVK vs. Kingfa Science Technology | Taj GVK vs. Rico Auto Industries | Taj GVK vs. GACM Technologies 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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