Correlation Between Eros International and NIFTY SUMER
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By analyzing existing cross correlation between Eros International Media and NIFTY SUMER DURABLES, you can compare the effects of market volatilities on Eros International and NIFTY SUMER 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 NIFTY SUMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and NIFTY SUMER.
Diversification Opportunities for Eros International and NIFTY SUMER
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eros and NIFTY is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and NIFTY SUMER DURABLES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIFTY SUMER DURABLES 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 NIFTY SUMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIFTY SUMER DURABLES has no effect on the direction of Eros International i.e., Eros International and NIFTY SUMER go up and down completely randomly.
Pair Corralation between Eros International and NIFTY SUMER
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the NIFTY SUMER. In addition to that, Eros International is 3.15 times more volatile than NIFTY SUMER DURABLES. It trades about -0.03 of its total potential returns per unit of risk. NIFTY SUMER DURABLES is currently generating about 0.14 per unit of volatility. If you would invest 2,905,475 in NIFTY SUMER DURABLES on September 23, 2024 and sell it today you would earn a total of 1,224,990 from holding NIFTY SUMER DURABLES or generate 42.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.87% |
| Values | Daily Returns |
Eros International Media vs. NIFTY SUMER DURABLES
Performance |
| Timeline |
Eros International and NIFTY SUMER Volatility Contrast
Predicted Return Density |
| Returns |
Eros International Media
Pair trading matchups for Eros International
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Pair Trading with Eros International and NIFTY SUMER
The main advantage of trading using opposite Eros International and NIFTY SUMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, NIFTY SUMER 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 NIFTY SUMER will offset losses from the drop in NIFTY SUMER's long position.| Eros International vs. Bharat Road Network | Eros International vs. EIH Associated Hotels | Eros International vs. Transport of | Eros International vs. Golden Tobacco Limited |
| NIFTY SUMER vs. HDFC Asset Management | NIFTY SUMER vs. DJ Mediaprint Logistics | NIFTY SUMER vs. Home First Finance | NIFTY SUMER 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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