Correlation Between EIH Associated and Kaynes Technology
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By analyzing existing cross correlation between EIH Associated Hotels and Kaynes Technology India, you can compare the effects of market volatilities on EIH Associated and Kaynes Technology 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 Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Kaynes Technology.
Diversification Opportunities for EIH Associated and Kaynes Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EIH and Kaynes is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India 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 Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of EIH Associated i.e., EIH Associated and Kaynes Technology go up and down completely randomly.
Pair Corralation between EIH Associated and Kaynes Technology
Assuming the 90 days trading horizon EIH Associated is expected to generate 1.49 times less return on investment than Kaynes Technology. In addition to that, EIH Associated is 2.7 times more volatile than Kaynes Technology India. It trades about 0.04 of its total potential returns per unit of risk. Kaynes Technology India is currently generating about 0.18 per unit of volatility. If you would invest 250,045 in Kaynes Technology India on September 3, 2024 and sell it today you would earn a total of 348,700 from holding Kaynes Technology India or generate 139.45% 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. Kaynes Technology India
Performance |
| Timeline |
| EIH Associated Hotels |
| Kaynes Technology India |
EIH Associated and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Kaynes Technology
The main advantage of trading using opposite EIH Associated and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| EIH Associated vs. Palred Technologies Limited | EIH Associated vs. PYRAMID TECHNOPLAST ORD | EIH Associated vs. UltraTech Cement Limited | EIH Associated vs. 63 moons technologies |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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