Correlation Between Credo Brands and EIH Associated
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By analyzing existing cross correlation between Credo Brands Marketing and EIH Associated Hotels, you can compare the effects of market volatilities on Credo Brands 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 Credo Brands with a short position of EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credo Brands and EIH Associated.
Diversification Opportunities for Credo Brands and EIH Associated
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Credo and EIH is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Credo Brands Marketing 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 Credo Brands 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 Credo Brands Marketing 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 Credo Brands i.e., Credo Brands and EIH Associated go up and down completely randomly.
Pair Corralation between Credo Brands and EIH Associated
Assuming the 90 days trading horizon Credo Brands Marketing is expected to under-perform the EIH Associated. But the stock apears to be less risky and, when comparing its historical volatility, Credo Brands Marketing is 1.61 times less risky than EIH Associated. The stock trades about -0.4 of its potential returns per unit of risk. The EIH Associated Hotels is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 40,930 in EIH Associated Hotels on October 30, 2024 and sell it today you would lose (4,775) from holding EIH Associated Hotels or give up 11.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credo Brands Marketing vs. EIH Associated Hotels
Performance |
| Timeline |
| Credo Brands Marketing |
| EIH Associated Hotels |
Credo Brands and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credo Brands and EIH Associated
The main advantage of trading using opposite Credo Brands and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credo Brands 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.| Credo Brands vs. HMT Limited | Credo Brands vs. KIOCL Limited | Credo Brands vs. Punjab Sind Bank | Credo Brands vs. ITI Limited |
| EIH Associated vs. State Bank of | EIH Associated vs. Life Insurance | EIH Associated vs. HDFC Bank Limited | EIH Associated vs. ICICI Bank 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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