Correlation Between NIIT and EIH Associated
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By analyzing existing cross correlation between NIIT Limited and EIH Associated Hotels, you can compare the effects of market volatilities on NIIT 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 NIIT with a short position of EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIIT and EIH Associated.
Diversification Opportunities for NIIT and EIH Associated
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIIT and EIH is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NIIT 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 NIIT 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 NIIT 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 NIIT i.e., NIIT and EIH Associated go up and down completely randomly.
Pair Corralation between NIIT and EIH Associated
Assuming the 90 days trading horizon NIIT Limited is expected to generate 1.37 times more return on investment than EIH Associated. However, NIIT is 1.37 times more volatile than EIH Associated Hotels. It trades about 0.06 of its potential returns per unit of risk. EIH Associated Hotels is currently generating about 0.06 per unit of risk. If you would invest 7,999 in NIIT Limited on November 8, 2024 and sell it today you would earn a total of 6,816 from holding NIIT Limited or generate 85.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIIT Limited vs. EIH Associated Hotels
Performance |
| Timeline |
| NIIT Limited |
| EIH Associated Hotels |
NIIT and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIIT and EIH Associated
The main advantage of trading using opposite NIIT and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIIT 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.| NIIT vs. Silver Touch Technologies | NIIT vs. The State Trading | NIIT vs. Tamilnad Mercantile Bank | NIIT vs. Welspun Investments and |
| EIH Associated vs. Mahamaya Steel Industries | EIH Associated vs. Hexa Tradex Limited | EIH Associated vs. Spencers Retail Limited | EIH Associated vs. Zenith Steel Pipes |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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