Correlation Between Eros International and Amrutanjan Health
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By analyzing existing cross correlation between Eros International Media and Amrutanjan Health Care, you can compare the effects of market volatilities on Eros International and Amrutanjan Health 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 Amrutanjan Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Amrutanjan Health.
Diversification Opportunities for Eros International and Amrutanjan Health
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eros and Amrutanjan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Amrutanjan Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amrutanjan Health Care 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 Amrutanjan Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amrutanjan Health Care has no effect on the direction of Eros International i.e., Eros International and Amrutanjan Health go up and down completely randomly.
Pair Corralation between Eros International and Amrutanjan Health
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Amrutanjan Health. In addition to that, Eros International is 1.3 times more volatile than Amrutanjan Health Care. It trades about -0.35 of its total potential returns per unit of risk. Amrutanjan Health Care is currently generating about -0.12 per unit of volatility. If you would invest 73,975 in Amrutanjan Health Care on August 25, 2024 and sell it today you would lose (3,995) from holding Amrutanjan Health Care or give up 5.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. Amrutanjan Health Care
Performance |
| Timeline |
| Eros International Media |
| Amrutanjan Health Care |
Eros International and Amrutanjan Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Amrutanjan Health
The main advantage of trading using opposite Eros International and Amrutanjan Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Amrutanjan Health 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 Amrutanjan Health will offset losses from the drop in Amrutanjan Health's long position.| Eros International vs. Reliance Communications Limited | Eros International vs. Mangalam Drugs And | Eros International vs. Kalyani Steels Limited | Eros International vs. Hindustan Construction |
| Amrutanjan Health vs. State Bank of | Amrutanjan Health vs. Life Insurance | Amrutanjan Health vs. HDFC Bank Limited | Amrutanjan Health 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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