Correlation Between EIH Associated and Zomato
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By analyzing existing cross correlation between EIH Associated Hotels and Zomato Limited, you can compare the effects of market volatilities on EIH Associated and Zomato 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 Zomato. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Zomato.
Diversification Opportunities for EIH Associated and Zomato
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EIH and Zomato is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Zomato Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zomato Limited 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 Zomato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zomato Limited has no effect on the direction of EIH Associated i.e., EIH Associated and Zomato go up and down completely randomly.
Pair Corralation between EIH Associated and Zomato
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 1.46 times more return on investment than Zomato. However, EIH Associated is 1.46 times more volatile than Zomato Limited. It trades about -0.02 of its potential returns per unit of risk. Zomato Limited is currently generating about -0.38 per unit of risk. If you would invest 41,685 in EIH Associated Hotels on October 12, 2024 and sell it today you would lose (1,025) from holding EIH Associated Hotels or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Zomato Limited
Performance |
| Timeline |
| EIH Associated Hotels |
| Zomato Limited |
EIH Associated and Zomato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Zomato
The main advantage of trading using opposite EIH Associated and Zomato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Zomato 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 Zomato will offset losses from the drop in Zomato's long position.| EIH Associated vs. 63 moons technologies | EIH Associated vs. UltraTech Cement Limited | EIH Associated vs. California Software | EIH Associated vs. Selan Exploration Technology |
| Zomato vs. Nucleus Software Exports | Zomato vs. California Software | Zomato vs. SINCLAIRS HOTELS ORD | Zomato 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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