Correlation Between Eros International and Imagicaaworld Entertainment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eros International Media and Imagicaaworld Entertainment Limited, you can compare the effects of market volatilities on Eros International and Imagicaaworld Entertainment 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 Imagicaaworld Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Imagicaaworld Entertainment.
Diversification Opportunities for Eros International and Imagicaaworld Entertainment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eros and Imagicaaworld is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Imagicaaworld Entertainment Li in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagicaaworld Entertainment 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 Imagicaaworld Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagicaaworld Entertainment has no effect on the direction of Eros International i.e., Eros International and Imagicaaworld Entertainment go up and down completely randomly.
Pair Corralation between Eros International and Imagicaaworld Entertainment
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Imagicaaworld Entertainment. In addition to that, Eros International is 1.02 times more volatile than Imagicaaworld Entertainment Limited. It trades about -0.01 of its total potential returns per unit of risk. Imagicaaworld Entertainment Limited is currently generating about 0.06 per unit of volatility. If you would invest 4,770 in Imagicaaworld Entertainment Limited on August 25, 2024 and sell it today you would earn a total of 2,430 from holding Imagicaaworld Entertainment Limited or generate 50.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. Imagicaaworld Entertainment Li
Performance |
| Timeline |
| Eros International Media |
| Imagicaaworld Entertainment |
Eros International and Imagicaaworld Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Imagicaaworld Entertainment
The main advantage of trading using opposite Eros International and Imagicaaworld Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Imagicaaworld Entertainment 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 Imagicaaworld Entertainment will offset losses from the drop in Imagicaaworld Entertainment's long position.The idea behind Eros International Media and Imagicaaworld Entertainment Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |