Correlation Between Eros International and Viceroy Hotels
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By analyzing existing cross correlation between Eros International Media and Viceroy Hotels Limited, you can compare the effects of market volatilities on Eros International 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 Eros International with a short position of Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Viceroy Hotels.
Diversification Opportunities for Eros International and Viceroy Hotels
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eros and Viceroy is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy Hotels and Eros International 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 Eros International Media 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 Eros International i.e., Eros International and Viceroy Hotels go up and down completely randomly.
Pair Corralation between Eros International and Viceroy Hotels
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Viceroy Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.36 times less risky than Viceroy Hotels. The stock trades about -0.23 of its potential returns per unit of risk. The Viceroy Hotels Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12,479 in Viceroy Hotels Limited on August 27, 2024 and sell it today you would earn a total of 817.00 from holding Viceroy Hotels Limited or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. Viceroy Hotels Limited
Performance |
| Timeline |
| Eros International Media |
| Viceroy Hotels |
Eros International and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Viceroy Hotels
The main advantage of trading using opposite Eros International and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International 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.| Eros International vs. Viceroy Hotels Limited | Eros International vs. Embassy Office Parks | Eros International vs. Kamat Hotels Limited | Eros International vs. SINCLAIRS HOTELS ORD |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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