Correlation Between Eros Media and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Eros Media and Liberty Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eros Media and Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros Media World and Liberty Media, you can compare the effects of market volatilities on Eros Media and Liberty Media 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 Eros Media with a short position of Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros Media and Liberty Media.
Diversification Opportunities for Eros Media and Liberty Media
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eros and Liberty is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eros Media World and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and Eros Media 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 Eros Media World are associated (or correlated) with Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of Eros Media i.e., Eros Media and Liberty Media go up and down completely randomly.
Pair Corralation between Eros Media and Liberty Media
Assuming the 90 days horizon Eros Media World is expected to generate 0.86 times more return on investment than Liberty Media. However, Eros Media World is 1.16 times less risky than Liberty Media. It trades about 0.13 of its potential returns per unit of risk. Liberty Media is currently generating about 0.05 per unit of risk. If you would invest 47.00 in Eros Media World on August 27, 2024 and sell it today you would lose (37.00) from holding Eros Media World or give up 78.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 9.4% |
| Values | Daily Returns |
Eros Media World vs. Liberty Media
Performance |
| Timeline |
| Eros Media World |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Liberty Media |
Eros Media and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros Media and Liberty Media
The main advantage of trading using opposite Eros Media and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros Media position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.| Eros Media vs. Anghami Warrants | Eros Media vs. Maxx Sports TV | Eros Media vs. American Picture House | Eros Media vs. Imax Corp |
| Liberty Media vs. AMREP | Liberty Media vs. Scholastic | Liberty Media vs. Peoples Educational Holdings | Liberty Media vs. Relx PLC ADR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |