Correlation Between AUTHUM INVESTMENT and Eros International
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By analyzing existing cross correlation between AUTHUM INVESTMENT INFRASTRUCTU and Eros International Media, you can compare the effects of market volatilities on AUTHUM INVESTMENT and Eros International 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 AUTHUM INVESTMENT with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTHUM INVESTMENT and Eros International.
Diversification Opportunities for AUTHUM INVESTMENT and Eros International
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUTHUM and Eros is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AUTHUM INVESTMENT INFRASTRUCTU and Eros International Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros International Media and AUTHUM INVESTMENT 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 AUTHUM INVESTMENT INFRASTRUCTU are associated (or correlated) with Eros International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros International Media has no effect on the direction of AUTHUM INVESTMENT i.e., AUTHUM INVESTMENT and Eros International go up and down completely randomly.
Pair Corralation between AUTHUM INVESTMENT and Eros International
Assuming the 90 days trading horizon AUTHUM INVESTMENT INFRASTRUCTU is expected to generate 1.1 times more return on investment than Eros International. However, AUTHUM INVESTMENT is 1.1 times more volatile than Eros International Media. It trades about 0.22 of its potential returns per unit of risk. Eros International Media is currently generating about 0.04 per unit of risk. If you would invest 160,195 in AUTHUM INVESTMENT INFRASTRUCTU on September 20, 2024 and sell it today you would earn a total of 17,005 from holding AUTHUM INVESTMENT INFRASTRUCTU or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUTHUM INVESTMENT INFRASTRUCTU vs. Eros International Media
Performance |
| Timeline |
| AUTHUM INVESTMENT |
| Eros International Media |
AUTHUM INVESTMENT and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTHUM INVESTMENT and Eros International
The main advantage of trading using opposite AUTHUM INVESTMENT and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTHUM INVESTMENT position performs unexpectedly, Eros International 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 Eros International will offset losses from the drop in Eros International's long position.| AUTHUM INVESTMENT vs. Yatra Online Limited | AUTHUM INVESTMENT vs. Zee Entertainment Enterprises | AUTHUM INVESTMENT vs. Indian Card Clothing | AUTHUM INVESTMENT vs. Tree House Education |
| Eros International vs. AUTHUM INVESTMENT INFRASTRUCTU | Eros International vs. Dhunseri Investments Limited | Eros International vs. Reliance Home Finance | Eros International vs. Tata Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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