Correlation Between EIH Associated and Punjab Sind
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By analyzing existing cross correlation between EIH Associated Hotels and Punjab Sind Bank, you can compare the effects of market volatilities on EIH Associated and Punjab Sind 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 Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Punjab Sind.
Diversification Opportunities for EIH Associated and Punjab Sind
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIH and Punjab is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Punjab Sind Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Sind Bank 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 Punjab Sind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Sind Bank has no effect on the direction of EIH Associated i.e., EIH Associated and Punjab Sind go up and down completely randomly.
Pair Corralation between EIH Associated and Punjab Sind
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 0.52 times more return on investment than Punjab Sind. However, EIH Associated Hotels is 1.94 times less risky than Punjab Sind. It trades about 0.37 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about 0.12 per unit of risk. If you would invest 37,635 in EIH Associated Hotels on September 13, 2024 and sell it today you would earn a total of 4,050 from holding EIH Associated Hotels or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Punjab Sind Bank
Performance |
| Timeline |
| EIH Associated Hotels |
| Punjab Sind Bank |
EIH Associated and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Punjab Sind
The main advantage of trading using opposite EIH Associated and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Punjab Sind 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 Punjab Sind will offset losses from the drop in Punjab Sind's 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 |
| Punjab Sind vs. Univa Foods Limited | Punjab Sind vs. WESTLIFE FOODWORLD LIMITED | Punjab Sind vs. Fine Organic Industries | Punjab Sind vs. Punjab National Bank |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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