Correlation Between EIH Associated and Gokul Refoils
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By analyzing existing cross correlation between EIH Associated Hotels and Gokul Refoils and, you can compare the effects of market volatilities on EIH Associated and Gokul Refoils 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 Gokul Refoils. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Gokul Refoils.
Diversification Opportunities for EIH Associated and Gokul Refoils
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between EIH and Gokul is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Gokul Refoils and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gokul Refoils 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 Gokul Refoils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gokul Refoils has no effect on the direction of EIH Associated i.e., EIH Associated and Gokul Refoils go up and down completely randomly.
Pair Corralation between EIH Associated and Gokul Refoils
Assuming the 90 days trading horizon EIH Associated is expected to generate 1.37 times less return on investment than Gokul Refoils. But when comparing it to its historical volatility, EIH Associated Hotels is 2.65 times less risky than Gokul Refoils. It trades about 0.19 of its potential returns per unit of risk. Gokul Refoils and is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,363 in Gokul Refoils and on September 5, 2024 and sell it today you would earn a total of 406.00 from holding Gokul Refoils and or generate 7.57% 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. Gokul Refoils and
Performance |
| Timeline |
| EIH Associated Hotels |
| Gokul Refoils |
EIH Associated and Gokul Refoils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Gokul Refoils
The main advantage of trading using opposite EIH Associated and Gokul Refoils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Gokul Refoils 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 Gokul Refoils will offset losses from the drop in Gokul Refoils' long position.| EIH Associated vs. Le Travenues Technology | EIH Associated vs. Thirumalai Chemicals Limited | EIH Associated vs. Sanginita Chemicals Limited | EIH Associated vs. DMCC SPECIALITY CHEMICALS |
| Gokul Refoils vs. Usha Martin Education | Gokul Refoils vs. EIH Associated Hotels | Gokul Refoils vs. Fineotex Chemical Limited | Gokul Refoils vs. Apollo Sindoori Hotels |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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