Correlation Between Eros International and Procter Gamble
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By analyzing existing cross correlation between Eros International Media and Procter Gamble Health, you can compare the effects of market volatilities on Eros International and Procter Gamble 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 Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Procter Gamble.
Diversification Opportunities for Eros International and Procter Gamble
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eros and Procter is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Procter Gamble Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble Health 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 Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble Health has no effect on the direction of Eros International i.e., Eros International and Procter Gamble go up and down completely randomly.
Pair Corralation between Eros International and Procter Gamble
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Procter Gamble. In addition to that, Eros International is 1.17 times more volatile than Procter Gamble Health. It trades about -0.4 of its total potential returns per unit of risk. Procter Gamble Health is currently generating about 0.18 per unit of volatility. If you would invest 508,170 in Procter Gamble Health on November 5, 2024 and sell it today you would earn a total of 30,090 from holding Procter Gamble Health or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. Procter Gamble Health
Performance |
| Timeline |
| Eros International Media |
| Procter Gamble Health |
Eros International and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Procter Gamble
The main advantage of trading using opposite Eros International and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| Eros International vs. Indraprastha Medical | Eros International vs. Hindware Home Innovation | Eros International vs. Speciality Restaurants Limited | Eros International vs. Can Fin Homes |
| Procter Gamble vs. NRB Industrial Bearings | Procter Gamble vs. Manaksia Coated Metals | Procter Gamble vs. Fine Organic Industries | Procter Gamble vs. Vinati Organics 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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