Correlation Between EIH Associated and Kalyani Investment
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By analyzing existing cross correlation between EIH Associated Hotels and Kalyani Investment, you can compare the effects of market volatilities on EIH Associated and Kalyani Investment 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 Kalyani Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Kalyani Investment.
Diversification Opportunities for EIH Associated and Kalyani Investment
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EIH and Kalyani is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Kalyani Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalyani Investment 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 Kalyani Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalyani Investment has no effect on the direction of EIH Associated i.e., EIH Associated and Kalyani Investment go up and down completely randomly.
Pair Corralation between EIH Associated and Kalyani Investment
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 1.29 times more return on investment than Kalyani Investment. However, EIH Associated is 1.29 times more volatile than Kalyani Investment. It trades about -0.2 of its potential returns per unit of risk. Kalyani Investment is currently generating about -0.36 per unit of risk. If you would invest 43,870 in EIH Associated Hotels on November 4, 2024 and sell it today you would lose (6,065) from holding EIH Associated Hotels or give up 13.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Kalyani Investment
Performance |
| Timeline |
| EIH Associated Hotels |
| Kalyani Investment |
EIH Associated and Kalyani Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Kalyani Investment
The main advantage of trading using opposite EIH Associated and Kalyani Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Kalyani Investment 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 Kalyani Investment will offset losses from the drop in Kalyani Investment's long position.| EIH Associated vs. Sarthak Metals Limited | EIH Associated vs. Agarwal Industrial | EIH Associated vs. GM Breweries Limited | EIH Associated vs. Ratnamani Metals Tubes |
| Kalyani Investment vs. Ankit Metal Power | Kalyani Investment vs. Bank of Maharashtra | Kalyani Investment vs. CREDITACCESS GRAMEEN LIMITED | Kalyani Investment vs. Sportking India 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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