Correlation Between EIH Associated and Eros International
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By analyzing existing cross correlation between EIH Associated Hotels and Eros International Media, you can compare the effects of market volatilities on EIH Associated and Eros International 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 Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Eros International.
Diversification Opportunities for EIH Associated and Eros International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIH and Eros is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Eros International Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros International Media 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 Eros International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros International Media has no effect on the direction of EIH Associated i.e., EIH Associated and Eros International go up and down completely randomly.
Pair Corralation between EIH Associated and Eros International
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 0.85 times more return on investment than Eros International. However, EIH Associated Hotels is 1.18 times less risky than Eros International. It trades about 0.05 of its potential returns per unit of risk. Eros International Media is currently generating about -0.08 per unit of risk. If you would invest 23,131 in EIH Associated Hotels on January 17, 2025 and sell it today you would earn a total of 14,599 from holding EIH Associated Hotels or generate 63.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
EIH Associated Hotels vs. Eros International Media
Performance |
| Timeline |
| EIH Associated Hotels |
| Eros International Media |
EIH Associated and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Eros International
The main advantage of trading using opposite EIH Associated and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Eros International 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 Eros International will offset losses from the drop in Eros International's long position.| EIH Associated vs. MRF Limited | EIH Associated vs. The Orissa Minerals | EIH Associated vs. Honeywell Automation India | EIH Associated vs. Page Industries Limited |
| Eros International vs. MRF Limited | Eros International vs. Nalwa Sons Investments | Eros International vs. JSW Holdings Limited | Eros International vs. Maharashtra Scooters 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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