Correlation Between Jindal Stainless and Eros International
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By analyzing existing cross correlation between Jindal Stainless Limited and Eros International Media, you can compare the effects of market volatilities on Jindal Stainless 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 Jindal Stainless with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Stainless and Eros International.
Diversification Opportunities for Jindal Stainless and Eros International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jindal and Eros is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Stainless Limited 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 Jindal Stainless 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 Jindal Stainless Limited 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 Jindal Stainless i.e., Jindal Stainless and Eros International go up and down completely randomly.
Pair Corralation between Jindal Stainless and Eros International
Assuming the 90 days trading horizon Jindal Stainless Limited is expected to generate 0.89 times more return on investment than Eros International. However, Jindal Stainless Limited is 1.12 times less risky than Eros International. It trades about -0.05 of its potential returns per unit of risk. Eros International Media is currently generating about -0.06 per unit of risk. If you would invest 79,983 in Jindal Stainless Limited on September 1, 2024 and sell it today you would lose (11,663) from holding Jindal Stainless Limited or give up 14.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindal Stainless Limited vs. Eros International Media
Performance |
| Timeline |
| Jindal Stainless |
| Eros International Media |
Jindal Stainless and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Stainless and Eros International
The main advantage of trading using opposite Jindal Stainless and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Stainless 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.| Jindal Stainless vs. NMDC Limited | Jindal Stainless vs. Embassy Office Parks | Jindal Stainless vs. Gujarat Narmada Valley | Jindal Stainless vs. Gujarat Alkalies and |
| Eros International vs. Metalyst Forgings Limited | Eros International vs. Gujarat Lease Financing | Eros International vs. Rajnandini Metal Limited | Eros International vs. Shyam Metalics and |
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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