Correlation Between Eros International and G Tec
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By analyzing existing cross correlation between Eros International Media and G Tec Jainx Education, you can compare the effects of market volatilities on Eros International and G Tec 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 G Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and G Tec.
Diversification Opportunities for Eros International and G Tec
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eros and GTECJAINX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and G Tec Jainx Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Tec Jainx 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 G Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Tec Jainx has no effect on the direction of Eros International i.e., Eros International and G Tec go up and down completely randomly.
Pair Corralation between Eros International and G Tec
Assuming the 90 days trading horizon Eros International Media is expected to generate 0.74 times more return on investment than G Tec. However, Eros International Media is 1.35 times less risky than G Tec. It trades about -0.15 of its potential returns per unit of risk. G Tec Jainx Education is currently generating about -0.31 per unit of risk. If you would invest 1,744 in Eros International Media on September 5, 2024 and sell it today you would lose (146.00) from holding Eros International Media or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. G Tec Jainx Education
Performance |
| Timeline |
| Eros International Media |
| G Tec Jainx |
Eros International and G Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and G Tec
The main advantage of trading using opposite Eros International and G Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, G Tec 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 G Tec will offset losses from the drop in G Tec's long position.| Eros International vs. Reliance Industries Limited | Eros International vs. HDFC Bank Limited | Eros International vs. Tata Consultancy Services | Eros International vs. Bharti Airtel Limited |
| G Tec vs. Eros International Media | G Tec vs. FCS Software Solutions | G Tec vs. Nucleus Software Exports | G Tec vs. One 97 Communications |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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