Correlation Between Eros International and Network18 Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eros International Media and Network18 Media Investments, you can compare the effects of market volatilities on Eros International and Network18 Media 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 Network18 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Network18 Media.
Diversification Opportunities for Eros International and Network18 Media
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eros and Network18 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Network18 Media Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network18 Media Inve 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 Network18 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network18 Media Inve has no effect on the direction of Eros International i.e., Eros International and Network18 Media go up and down completely randomly.
Pair Corralation between Eros International and Network18 Media
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Network18 Media. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.32 times less risky than Network18 Media. The stock trades about -0.1 of its potential returns per unit of risk. The Network18 Media Investments is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 8,111 in Network18 Media Investments on August 31, 2024 and sell it today you would lose (191.00) from holding Network18 Media Investments or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. Network18 Media Investments
Performance |
| Timeline |
| Eros International Media |
| Network18 Media Inve |
Eros International and Network18 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Network18 Media
The main advantage of trading using opposite Eros International and Network18 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Network18 Media 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 Network18 Media will offset losses from the drop in Network18 Media's long position.| Eros International vs. California Software | Eros International vs. Dev Information Technology | Eros International vs. The State Trading | Eros International vs. Network18 Media Investments |
| Network18 Media vs. Centum Electronics Limited | Network18 Media vs. Electronics Mart India | Network18 Media vs. Salzer Electronics Limited | Network18 Media vs. MIC Electronics 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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