Correlation Between EIH Associated and Viceroy Hotels
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By analyzing existing cross correlation between EIH Associated Hotels and Viceroy Hotels Limited, you can compare the effects of market volatilities on EIH Associated and Viceroy 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 Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Viceroy Hotels.
Diversification Opportunities for EIH Associated and Viceroy Hotels
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EIH and Viceroy is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy Hotels 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 Viceroy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viceroy Hotels has no effect on the direction of EIH Associated i.e., EIH Associated and Viceroy Hotels go up and down completely randomly.
Pair Corralation between EIH Associated and Viceroy Hotels
Assuming the 90 days trading horizon EIH Associated is expected to generate 6.41 times less return on investment than Viceroy Hotels. But when comparing it to its historical volatility, EIH Associated Hotels is 5.75 times less risky than Viceroy Hotels. It trades about 0.05 of its potential returns per unit of risk. Viceroy Hotels Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 185.00 in Viceroy Hotels Limited on August 26, 2024 and sell it today you would earn a total of 13,111 from holding Viceroy Hotels Limited or generate 7087.03% 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. Viceroy Hotels Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Viceroy Hotels |
EIH Associated and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Viceroy Hotels
The main advantage of trading using opposite EIH Associated and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Viceroy 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 Viceroy Hotels will offset losses from the drop in Viceroy Hotels' long position.| EIH Associated vs. MMTC Limited | EIH Associated vs. Kingfa Science Technology | EIH Associated vs. Rico Auto Industries | EIH Associated vs. GACM Technologies Limited |
| Viceroy Hotels vs. MMTC Limited | Viceroy Hotels vs. Kingfa Science Technology | Viceroy Hotels vs. Rico Auto Industries | Viceroy Hotels vs. GACM Technologies Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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