Correlation Between EIH Associated and Asian Hotels
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By analyzing existing cross correlation between EIH Associated Hotels and Asian Hotels Limited, you can compare the effects of market volatilities on EIH Associated 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 EIH Associated with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Asian Hotels.
Diversification Opportunities for EIH Associated and Asian Hotels
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between EIH and Asian is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated 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 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 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 EIH Associated i.e., EIH Associated and Asian Hotels go up and down completely randomly.
Pair Corralation between EIH Associated and Asian Hotels
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 0.72 times more return on investment than Asian Hotels. However, EIH Associated Hotels is 1.38 times less risky than Asian Hotels. It trades about 0.27 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.06 per unit of risk. 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 |
EIH Associated Hotels vs. Asian Hotels Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Asian Hotels Limited |
EIH Associated and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Asian Hotels
The main advantage of trading using opposite EIH Associated and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated 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.| EIH Associated vs. ICICI Bank Limited | EIH Associated vs. Newgen Software Technologies | EIH Associated vs. Central Bank of | EIH Associated vs. MAS Financial Services |
| Asian Hotels vs. Indian Railway Finance | Asian Hotels vs. Cholamandalam Financial Holdings | Asian Hotels vs. Reliance Industries Limited | Asian Hotels vs. Tata Consultancy 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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