Correlation Between EIH Associated and Maharashtra Scooters
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By analyzing existing cross correlation between EIH Associated Hotels and Maharashtra Scooters Limited, you can compare the effects of market volatilities on EIH Associated and Maharashtra Scooters 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 Maharashtra Scooters. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Maharashtra Scooters.
Diversification Opportunities for EIH Associated and Maharashtra Scooters
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between EIH and Maharashtra is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Maharashtra Scooters Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maharashtra Scooters 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 Maharashtra Scooters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maharashtra Scooters has no effect on the direction of EIH Associated i.e., EIH Associated and Maharashtra Scooters go up and down completely randomly.
Pair Corralation between EIH Associated and Maharashtra Scooters
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 3.74 times more return on investment than Maharashtra Scooters. However, EIH Associated is 3.74 times more volatile than Maharashtra Scooters Limited. It trades about 0.06 of its potential returns per unit of risk. Maharashtra Scooters Limited is currently generating about 0.05 per unit of risk. If you would invest 23,350 in EIH Associated Hotels on August 29, 2024 and sell it today you would earn a total of 15,715 from holding EIH Associated Hotels or generate 67.3% 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. Maharashtra Scooters Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Maharashtra Scooters |
EIH Associated and Maharashtra Scooters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Maharashtra Scooters
The main advantage of trading using opposite EIH Associated and Maharashtra Scooters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Maharashtra Scooters 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 Maharashtra Scooters will offset losses from the drop in Maharashtra Scooters' long position.| EIH Associated vs. Hemisphere Properties India | EIH Associated vs. India Glycols Limited | EIH Associated vs. Indo Borax Chemicals | EIH Associated vs. Kingfa Science Technology |
| Maharashtra Scooters vs. Hemisphere Properties India | Maharashtra Scooters vs. India Glycols Limited | Maharashtra Scooters vs. Indo Borax Chemicals | Maharashtra Scooters vs. Kingfa Science Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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