Correlation Between EIH Associated and Indian Card
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By analyzing existing cross correlation between EIH Associated Hotels and Indian Card Clothing, you can compare the effects of market volatilities on EIH Associated and Indian Card 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 Indian Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Indian Card.
Diversification Opportunities for EIH Associated and Indian Card
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIH and Indian is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Indian Card Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Card Clothing 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 Indian Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Card Clothing has no effect on the direction of EIH Associated i.e., EIH Associated and Indian Card go up and down completely randomly.
Pair Corralation between EIH Associated and Indian Card
Assuming the 90 days trading horizon EIH Associated Hotels is expected to under-perform the Indian Card. In addition to that, EIH Associated is 1.22 times more volatile than Indian Card Clothing. It trades about -0.19 of its total potential returns per unit of risk. Indian Card Clothing is currently generating about -0.13 per unit of volatility. If you would invest 31,535 in Indian Card Clothing on November 3, 2024 and sell it today you would lose (2,480) from holding Indian Card Clothing or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Indian Card Clothing
Performance |
| Timeline |
| EIH Associated Hotels |
| Indian Card Clothing |
EIH Associated and Indian Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Indian Card
The main advantage of trading using opposite EIH Associated and Indian Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Indian Card 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 Indian Card will offset losses from the drop in Indian Card's long position.| EIH Associated vs. Tata Investment | EIH Associated vs. ILFS Investment Managers | EIH Associated vs. Total Transport Systems | EIH Associated vs. Shree Rama Multi Tech |
| Indian Card vs. Reliance Industries Limited | Indian Card vs. HDFC Bank Limited | Indian Card vs. Kingfa Science Technology | Indian Card vs. GTL 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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