Correlation Between Manaksia Coated and EIH Associated
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By analyzing existing cross correlation between Manaksia Coated Metals and EIH Associated Hotels, you can compare the effects of market volatilities on Manaksia Coated and EIH Associated 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 Manaksia Coated with a short position of EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Coated and EIH Associated.
Diversification Opportunities for Manaksia Coated and EIH Associated
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manaksia and EIH is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Coated Metals and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated Hotels and Manaksia Coated 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 Manaksia Coated Metals are associated (or correlated) with EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of Manaksia Coated i.e., Manaksia Coated and EIH Associated go up and down completely randomly.
Pair Corralation between Manaksia Coated and EIH Associated
Assuming the 90 days trading horizon Manaksia Coated is expected to generate 1.61 times less return on investment than EIH Associated. In addition to that, Manaksia Coated is 1.06 times more volatile than EIH Associated Hotels. It trades about 0.09 of its total potential returns per unit of risk. EIH Associated Hotels is currently generating about 0.16 per unit of volatility. If you would invest 35,740 in EIH Associated Hotels on August 25, 2024 and sell it today you would earn a total of 2,620 from holding EIH Associated Hotels or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Manaksia Coated Metals vs. EIH Associated Hotels
Performance |
| Timeline |
| Manaksia Coated Metals |
| EIH Associated Hotels |
Manaksia Coated and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Coated and EIH Associated
The main advantage of trading using opposite Manaksia Coated and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Coated position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| Manaksia Coated vs. Reliance Industries Limited | Manaksia Coated vs. Tata Consultancy Services | Manaksia Coated vs. HDFC Bank Limited | Manaksia Coated vs. Bharti Airtel Limited |
| EIH Associated vs. MMTC Limited | EIH Associated vs. Kingfa Science Technology | EIH Associated vs. Rico Auto Industries | EIH Associated 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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