Correlation Between Eros International and Agro Phos
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By analyzing existing cross correlation between Eros International Media and Agro Phos India, you can compare the effects of market volatilities on Eros International and Agro Phos 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 International with a short position of Agro Phos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Agro Phos.
Diversification Opportunities for Eros International and Agro Phos
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eros and Agro is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Agro Phos India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Phos India and Eros International 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 International Media are associated (or correlated) with Agro Phos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Phos India has no effect on the direction of Eros International i.e., Eros International and Agro Phos go up and down completely randomly.
Pair Corralation between Eros International and Agro Phos
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Agro Phos. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.06 times less risky than Agro Phos. The stock trades about -0.03 of its potential returns per unit of risk. The Agro Phos India is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,085 in Agro Phos India on October 11, 2024 and sell it today you would lose (84.00) from holding Agro Phos India or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
Eros International Media vs. Agro Phos India
Performance |
| Timeline |
| Eros International Media |
| Agro Phos India |
Eros International and Agro Phos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Agro Phos
The main advantage of trading using opposite Eros International and Agro Phos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Agro Phos 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 Agro Phos will offset losses from the drop in Agro Phos' long position.| Eros International vs. Ortel Communications Limited | Eros International vs. Datamatics Global Services | Eros International vs. Network18 Media Investments | Eros International vs. Music Broadcast Limited |
| Agro Phos vs. Cyber Media Research | Agro Phos vs. Infomedia Press Limited | Agro Phos vs. Eros International Media | Agro Phos vs. Rajnandini Metal 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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