Correlation Between EIH Associated and SINCLAIRS HOTELS
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By analyzing existing cross correlation between EIH Associated Hotels and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on EIH Associated and SINCLAIRS HOTELS 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 SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and SINCLAIRS HOTELS.
Diversification Opportunities for EIH Associated and SINCLAIRS HOTELS
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EIH and SINCLAIRS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of EIH Associated i.e., EIH Associated and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between EIH Associated and SINCLAIRS HOTELS
Assuming the 90 days trading horizon EIH Associated is expected to generate 1.58 times less return on investment than SINCLAIRS HOTELS. But when comparing it to its historical volatility, EIH Associated Hotels is 1.89 times less risky than SINCLAIRS HOTELS. It trades about 0.28 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 9,072 in SINCLAIRS HOTELS ORD on August 30, 2024 and sell it today you would earn a total of 1,587 from holding SINCLAIRS HOTELS ORD or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| EIH Associated Hotels |
| SINCLAIRS HOTELS ORD |
EIH Associated and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and SINCLAIRS HOTELS
The main advantage of trading using opposite EIH Associated and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, SINCLAIRS HOTELS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's 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 |
| SINCLAIRS HOTELS vs. The Indian Hotels | SINCLAIRS HOTELS vs. Chalet Hotels Limited | SINCLAIRS HOTELS vs. Lemon Tree Hotels | SINCLAIRS HOTELS vs. Juniper 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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