Correlation Between Spencers Retail and Eros International
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By analyzing existing cross correlation between Spencers Retail Limited and Eros International Media, you can compare the effects of market volatilities on Spencers Retail 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 Spencers Retail with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Eros International.
Diversification Opportunities for Spencers Retail and Eros International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spencers and Eros is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail 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 Spencers Retail 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 Spencers Retail 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 Spencers Retail i.e., Spencers Retail and Eros International go up and down completely randomly.
Pair Corralation between Spencers Retail and Eros International
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 1.03 times more return on investment than Eros International. However, Spencers Retail is 1.03 times more volatile than Eros International Media. It trades about 0.03 of its potential returns per unit of risk. Eros International Media is currently generating about -0.04 per unit of risk. If you would invest 6,610 in Spencers Retail Limited on October 27, 2024 and sell it today you would earn a total of 1,714 from holding Spencers Retail Limited or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Spencers Retail Limited vs. Eros International Media
Performance |
| Timeline |
| Spencers Retail |
| Eros International Media |
Spencers Retail and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Eros International
The main advantage of trading using opposite Spencers Retail and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail 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.| Spencers Retail vs. Kingfa Science Technology | Spencers Retail vs. Rico Auto Industries | Spencers Retail vs. GACM Technologies Limited | Spencers Retail vs. COSMO FIRST LIMITED |
| Eros International vs. Infomedia Press Limited | Eros International vs. Network18 Media Investments | Eros International vs. Radaan Mediaworks India | Eros International vs. ZF Commercial Vehicle |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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