Correlation Between EIH Associated and Apex Frozen
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By analyzing existing cross correlation between EIH Associated Hotels and Apex Frozen Foods, you can compare the effects of market volatilities on EIH Associated and Apex Frozen 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 EIH Associated with a short position of Apex Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Apex Frozen.
Diversification Opportunities for EIH Associated and Apex Frozen
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EIH and Apex is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Apex Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Frozen Foods and EIH Associated 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 EIH Associated Hotels are associated (or correlated) with Apex Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Frozen Foods has no effect on the direction of EIH Associated i.e., EIH Associated and Apex Frozen go up and down completely randomly.
Pair Corralation between EIH Associated and Apex Frozen
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 0.7 times more return on investment than Apex Frozen. However, EIH Associated Hotels is 1.43 times less risky than Apex Frozen. It trades about 0.06 of its potential returns per unit of risk. Apex Frozen Foods is currently generating about 0.0 per unit of risk. If you would invest 36,555 in EIH Associated Hotels on October 16, 2024 and sell it today you would earn a total of 1,910 from holding EIH Associated Hotels or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Apex Frozen Foods
Performance |
| Timeline |
| EIH Associated Hotels |
| Apex Frozen Foods |
EIH Associated and Apex Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Apex Frozen
The main advantage of trading using opposite EIH Associated and Apex Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Apex Frozen 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 Apex Frozen will offset losses from the drop in Apex Frozen's long position.| EIH Associated vs. Embassy Office Parks | EIH Associated vs. Spencers Retail Limited | EIH Associated vs. Next Mediaworks Limited | EIH Associated vs. Credo Brands Marketing |
| Apex Frozen vs. Apollo Hospitals Enterprise | Apex Frozen vs. Country Club Hospitality | Apex Frozen vs. EIH Associated Hotels | Apex Frozen vs. The Byke Hospitality |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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