Correlation Between EIH Associated and Fortis Healthcare
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By analyzing existing cross correlation between EIH Associated Hotels and Fortis Healthcare Limited, you can compare the effects of market volatilities on EIH Associated and Fortis Healthcare 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 Fortis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Fortis Healthcare.
Diversification Opportunities for EIH Associated and Fortis Healthcare
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EIH and Fortis is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Fortis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortis Healthcare 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 Fortis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortis Healthcare has no effect on the direction of EIH Associated i.e., EIH Associated and Fortis Healthcare go up and down completely randomly.
Pair Corralation between EIH Associated and Fortis Healthcare
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 1.19 times more return on investment than Fortis Healthcare. However, EIH Associated is 1.19 times more volatile than Fortis Healthcare Limited. It trades about -0.02 of its potential returns per unit of risk. Fortis Healthcare Limited is currently generating about -0.18 per unit of risk. If you would invest 41,145 in EIH Associated Hotels on November 6, 2024 and sell it today you would lose (895.00) from holding EIH Associated Hotels or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Fortis Healthcare Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Fortis Healthcare |
EIH Associated and Fortis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Fortis Healthcare
The main advantage of trading using opposite EIH Associated and Fortis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Fortis Healthcare 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 Fortis Healthcare will offset losses from the drop in Fortis Healthcare's long position.| EIH Associated vs. Tera Software Limited | EIH Associated vs. ideaForge Technology Limited | EIH Associated vs. Kingfa Science Technology | EIH Associated vs. Cambridge Technology Enterprises |
| Fortis Healthcare vs. Union Bank of | Fortis Healthcare vs. Zuari Agro Chemicals | Fortis Healthcare vs. UCO Bank | Fortis Healthcare vs. Chembond Chemicals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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