Correlation Between Eros International and MIC Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eros International Media and MIC Electronics Limited, you can compare the effects of market volatilities on Eros International and MIC Electronics 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 MIC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and MIC Electronics.
Diversification Opportunities for Eros International and MIC Electronics
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eros and MIC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and MIC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIC Electronics 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 MIC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIC Electronics has no effect on the direction of Eros International i.e., Eros International and MIC Electronics go up and down completely randomly.
Pair Corralation between Eros International and MIC Electronics
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the MIC Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.1 times less risky than MIC Electronics. The stock trades about -0.35 of its potential returns per unit of risk. The MIC Electronics Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 8,525 in MIC Electronics Limited on August 25, 2024 and sell it today you would lose (191.00) from holding MIC Electronics Limited or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eros International Media vs. MIC Electronics Limited
Performance |
| Timeline |
| Eros International Media |
| MIC Electronics |
Eros International and MIC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and MIC Electronics
The main advantage of trading using opposite Eros International and MIC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, MIC Electronics 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 MIC Electronics will offset losses from the drop in MIC Electronics' long position.The idea behind Eros International Media and MIC Electronics 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.
| MIC Electronics vs. Life Insurance | MIC Electronics vs. Power Finance | MIC Electronics vs. HDFC Bank Limited | MIC Electronics vs. State Bank of |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges |