Correlation Between Eros International and SEPC
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By analyzing existing cross correlation between Eros International Media and SEPC Limited, you can compare the effects of market volatilities on Eros International and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and SEPC.
Diversification Opportunities for Eros International and SEPC
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eros and SEPC is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC Limited 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of Eros International i.e., Eros International and SEPC go up and down completely randomly.
Pair Corralation between Eros International and SEPC
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the SEPC. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.69 times less risky than SEPC. The stock trades about -0.14 of its potential returns per unit of risk. The SEPC Limited is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,095 in SEPC Limited on October 25, 2024 and sell it today you would lose (273.00) from holding SEPC Limited or give up 13.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros International Media vs. SEPC Limited
Performance |
| Timeline |
| Eros International Media |
| SEPC Limited |
Eros International and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and SEPC
The main advantage of trading using opposite Eros International and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| Eros International vs. Indo Borax Chemicals | Eros International vs. Kingfa Science Technology | Eros International vs. Alkali Metals Limited | Eros International vs. Agro Phos India |
| SEPC vs. Kamat Hotels Limited | SEPC vs. Juniper Hotels | SEPC vs. JGCHEMICALS LIMITED | SEPC vs. Omkar Speciality Chemicals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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