Correlation Between MIC Electronics and EIH Associated
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By analyzing existing cross correlation between MIC Electronics Limited and EIH Associated Hotels, you can compare the effects of market volatilities on MIC Electronics 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 MIC Electronics with a short position of EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and EIH Associated.
Diversification Opportunities for MIC Electronics and EIH Associated
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between MIC and EIH is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited 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 MIC Electronics 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 MIC Electronics Limited 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 MIC Electronics i.e., MIC Electronics and EIH Associated go up and down completely randomly.
Pair Corralation between MIC Electronics and EIH Associated
Assuming the 90 days trading horizon MIC Electronics Limited is expected to under-perform the EIH Associated. In addition to that, MIC Electronics is 1.21 times more volatile than EIH Associated Hotels. It trades about -0.21 of its total potential returns per unit of risk. EIH Associated Hotels is currently generating about 0.27 per unit of volatility. If you would invest 36,900 in EIH Associated Hotels on September 1, 2024 and sell it today you would earn a total of 3,585 from holding EIH Associated Hotels or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIC Electronics Limited vs. EIH Associated Hotels
Performance |
| Timeline |
| MIC Electronics |
| EIH Associated Hotels |
MIC Electronics and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIC Electronics and EIH Associated
The main advantage of trading using opposite MIC Electronics and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics 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.| MIC Electronics vs. V2 Retail Limited | MIC Electronics vs. V Mart Retail Limited | MIC Electronics vs. Osia Hyper Retail | MIC Electronics vs. Praxis Home Retail |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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