Correlation Between EIH Associated and JSW Holdings
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By analyzing existing cross correlation between EIH Associated Hotels and JSW Holdings Limited, you can compare the effects of market volatilities on EIH Associated and JSW Holdings 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 JSW Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and JSW Holdings.
Diversification Opportunities for EIH Associated and JSW Holdings
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EIH and JSW is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and JSW Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSW Holdings 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 JSW Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSW Holdings Limited has no effect on the direction of EIH Associated i.e., EIH Associated and JSW Holdings go up and down completely randomly.
Pair Corralation between EIH Associated and JSW Holdings
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 2.82 times more return on investment than JSW Holdings. However, EIH Associated is 2.82 times more volatile than JSW Holdings Limited. It trades about 0.05 of its potential returns per unit of risk. JSW Holdings Limited is currently generating about 0.1 per unit of risk. If you would invest 22,386 in EIH Associated Hotels on September 2, 2024 and sell it today you would earn a total of 18,099 from holding EIH Associated Hotels or generate 80.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EIH Associated Hotels vs. JSW Holdings Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| JSW Holdings Limited |
EIH Associated and JSW Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and JSW Holdings
The main advantage of trading using opposite EIH Associated and JSW Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, JSW Holdings 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 JSW Holdings will offset losses from the drop in JSW Holdings' 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 |
| JSW Holdings vs. Metropolis Healthcare Limited | JSW Holdings vs. Fortis Healthcare Limited | JSW Holdings vs. Gallantt Ispat Limited | JSW Holdings vs. Procter Gamble Health |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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