Correlation Between Asian Hotels and EIH Associated
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By analyzing existing cross correlation between Asian Hotels Limited and EIH Associated Hotels, you can compare the effects of market volatilities on Asian Hotels and EIH Associated 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 Asian Hotels with a short position of EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and EIH Associated.
Diversification Opportunities for Asian Hotels and EIH Associated
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asian and EIH is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated Hotels and Asian 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 Asian Hotels Limited are associated (or correlated) with EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of Asian Hotels i.e., Asian Hotels and EIH Associated go up and down completely randomly.
Pair Corralation between Asian Hotels and EIH Associated
Assuming the 90 days trading horizon Asian Hotels is expected to generate 3.36 times less return on investment than EIH Associated. In addition to that, Asian Hotels is 1.38 times more volatile than EIH Associated Hotels. It trades about 0.06 of its total potential returns per unit of risk. EIH Associated Hotels is currently generating about 0.27 per unit of volatility. If you would invest 36,900 in EIH Associated Hotels on September 2, 2024 and sell it today you would earn a total of 3,585 from holding EIH Associated Hotels or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. EIH Associated Hotels
Performance |
| Timeline |
| Asian Hotels Limited |
| EIH Associated Hotels |
Asian Hotels and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and EIH Associated
The main advantage of trading using opposite Asian Hotels and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| Asian Hotels vs. Indian Railway Finance | Asian Hotels vs. Cholamandalam Financial Holdings | Asian Hotels vs. Reliance Industries Limited | Asian Hotels vs. Tata Consultancy Services |
| EIH Associated vs. ICICI Bank Limited | EIH Associated vs. Newgen Software Technologies | EIH Associated vs. Central Bank of | EIH Associated vs. MAS Financial Services |
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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