Correlation Between Eros International and Genus Power
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eros International Media and Genus Power Infrastructures, you can compare the effects of market volatilities on Eros International and Genus Power 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 Genus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Genus Power.
Diversification Opportunities for Eros International and Genus Power
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eros and Genus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Genus Power Infrastructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus Power Infrastr 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 Genus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus Power Infrastr has no effect on the direction of Eros International i.e., Eros International and Genus Power go up and down completely randomly.
Pair Corralation between Eros International and Genus Power
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Genus Power. In addition to that, Eros International is 1.23 times more volatile than Genus Power Infrastructures. It trades about -0.08 of its total potential returns per unit of risk. Genus Power Infrastructures is currently generating about 0.03 per unit of volatility. If you would invest 41,665 in Genus Power Infrastructures on September 12, 2024 and sell it today you would earn a total of 1,000.00 from holding Genus Power Infrastructures or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Eros International Media vs. Genus Power Infrastructures
Performance |
| Timeline |
| Eros International Media |
| Genus Power Infrastr |
Eros International and Genus Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Genus Power
The main advantage of trading using opposite Eros International and Genus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Genus Power 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 Genus Power will offset losses from the drop in Genus Power's long position.| Eros International vs. Reliance Industries Limited | Eros International vs. State Bank of | Eros International vs. HDFC Bank Limited | Eros International vs. Oil Natural Gas |
| Genus Power vs. Music Broadcast Limited | Genus Power vs. Total Transport Systems | Genus Power vs. Dev Information Technology | Genus Power vs. Eros International Media |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |