Correlation Between Hindustan Media and Eros International
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By analyzing existing cross correlation between Hindustan Media Ventures and Eros International Media, you can compare the effects of market volatilities on Hindustan Media and Eros International 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 Hindustan Media with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hindustan Media and Eros International.
Diversification Opportunities for Hindustan Media and Eros International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hindustan and Eros is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hindustan Media Ventures and Eros International Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros International Media and Hindustan Media 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 Hindustan Media Ventures are associated (or correlated) with Eros International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros International Media has no effect on the direction of Hindustan Media i.e., Hindustan Media and Eros International go up and down completely randomly.
Pair Corralation between Hindustan Media and Eros International
Assuming the 90 days trading horizon Hindustan Media Ventures is expected to generate 0.88 times more return on investment than Eros International. However, Hindustan Media Ventures is 1.13 times less risky than Eros International. It trades about -0.04 of its potential returns per unit of risk. Eros International Media is currently generating about -0.14 per unit of risk. If you would invest 9,414 in Hindustan Media Ventures on November 3, 2024 and sell it today you would lose (1,309) from holding Hindustan Media Ventures or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hindustan Media Ventures vs. Eros International Media
Performance |
| Timeline |
| Hindustan Media Ventures |
| Eros International Media |
Hindustan Media and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hindustan Media and Eros International
The main advantage of trading using opposite Hindustan Media and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hindustan Media position performs unexpectedly, Eros International 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 Eros International will offset losses from the drop in Eros International's long position.| Hindustan Media vs. Country Club Hospitality | Hindustan Media vs. Welspun Investments and | Hindustan Media vs. Tata Investment | Hindustan Media vs. Bajaj Holdings Investment |
| Eros International vs. Hybrid Financial Services | Eros International vs. HT Media Limited | Eros International vs. Infomedia Press Limited | Eros International vs. Arman Financial Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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