Correlation Between EIH Associated and SBI Cards
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By analyzing existing cross correlation between EIH Associated Hotels and SBI Cards and, you can compare the effects of market volatilities on EIH Associated and SBI Cards 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 SBI Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and SBI Cards.
Diversification Opportunities for EIH Associated and SBI Cards
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIH and SBI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and SBI Cards and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Cards 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 SBI Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Cards has no effect on the direction of EIH Associated i.e., EIH Associated and SBI Cards go up and down completely randomly.
Pair Corralation between EIH Associated and SBI Cards
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 6.13 times more return on investment than SBI Cards. However, EIH Associated is 6.13 times more volatile than SBI Cards and. It trades about 0.05 of its potential returns per unit of risk. SBI Cards and is currently generating about -0.01 per unit of risk. If you would invest 22,386 in EIH Associated Hotels on September 2, 2024 and sell it today you would earn a total of 18,099 from holding EIH Associated Hotels or generate 80.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
EIH Associated Hotels vs. SBI Cards and
Performance |
| Timeline |
| EIH Associated Hotels |
| SBI Cards |
EIH Associated and SBI Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and SBI Cards
The main advantage of trading using opposite EIH Associated and SBI Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, SBI Cards 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 SBI Cards will offset losses from the drop in SBI Cards' long position.| EIH Associated vs. ICICI Bank Limited | EIH Associated vs. Newgen Software Technologies | EIH Associated vs. Central Bank of | EIH Associated vs. MAS Financial Services |
| SBI Cards vs. Advani Hotels Resorts | SBI Cards vs. Reliance Home Finance | SBI Cards vs. Chalet Hotels Limited | SBI Cards vs. EIH Associated 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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