Correlation Between EIH Associated and Marshall Machines
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By analyzing existing cross correlation between EIH Associated Hotels and Marshall Machines Limited, you can compare the effects of market volatilities on EIH Associated and Marshall Machines 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 Marshall Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Marshall Machines.
Diversification Opportunities for EIH Associated and Marshall Machines
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between EIH and Marshall is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Marshall Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marshall Machines 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 Marshall Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marshall Machines has no effect on the direction of EIH Associated i.e., EIH Associated and Marshall Machines go up and down completely randomly.
Pair Corralation between EIH Associated and Marshall Machines
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 2.69 times more return on investment than Marshall Machines. However, EIH Associated is 2.69 times more volatile than Marshall Machines Limited. It trades about 0.05 of its potential returns per unit of risk. Marshall Machines Limited is currently generating about -0.07 per unit of risk. If you would invest 23,032 in EIH Associated Hotels on September 19, 2024 and sell it today you would earn a total of 18,863 from holding EIH Associated Hotels or generate 81.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
EIH Associated Hotels vs. Marshall Machines Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Marshall Machines |
EIH Associated and Marshall Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Marshall Machines
The main advantage of trading using opposite EIH Associated and Marshall Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Marshall Machines 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 Marshall Machines will offset losses from the drop in Marshall Machines' long position.| EIH Associated vs. Indian Railway Finance | EIH Associated vs. Cholamandalam Financial Holdings | EIH Associated vs. Reliance Industries Limited | EIH Associated vs. Tata Consultancy Services |
| Marshall Machines vs. Popular Vehicles and | Marshall Machines vs. EIH Associated Hotels | Marshall Machines vs. Spencers Retail Limited | Marshall Machines vs. Lemon Tree Hotels |
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 CEOs Directory module to screen CEOs from public companies around the world.
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