Correlation Between Eros International and Spencers Retail
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By analyzing existing cross correlation between Eros International Media and Spencers Retail Limited, you can compare the effects of market volatilities on Eros International and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and Spencers Retail.
Diversification Opportunities for Eros International and Spencers Retail
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eros and Spencers is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Eros International i.e., Eros International and Spencers Retail go up and down completely randomly.
Pair Corralation between Eros International and Spencers Retail
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the Spencers Retail. But the stock apears to be less risky and, when comparing its historical volatility, Eros International Media is 1.03 times less risky than Spencers Retail. The stock trades about -0.04 of its potential returns per unit of risk. The Spencers Retail Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,605 in Spencers Retail Limited on October 25, 2024 and sell it today you would earn a total of 1,705 from holding Spencers Retail Limited or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Eros International Media vs. Spencers Retail Limited
Performance |
| Timeline |
| Eros International Media |
| Spencers Retail |
Eros International and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and Spencers Retail
The main advantage of trading using opposite Eros International and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail'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 |
| Spencers Retail vs. Reliance Industries Limited | Spencers Retail vs. HDFC Bank Limited | Spencers Retail vs. Bharti Airtel Limited | Spencers Retail 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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