Correlation Between Baazar Style and Eros International
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By analyzing existing cross correlation between Baazar Style Retail and Eros International Media, you can compare the effects of market volatilities on Baazar Style 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 Baazar Style with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and Eros International.
Diversification Opportunities for Baazar Style and Eros International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baazar and Eros is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail 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 Baazar Style 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 Baazar Style Retail 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 Baazar Style i.e., Baazar Style and Eros International go up and down completely randomly.
Pair Corralation between Baazar Style and Eros International
Assuming the 90 days trading horizon Baazar Style Retail is expected to under-perform the Eros International. In addition to that, Baazar Style is 1.06 times more volatile than Eros International Media. It trades about -0.09 of its total potential returns per unit of risk. Eros International Media is currently generating about -0.02 per unit of volatility. If you would invest 2,470 in Eros International Media on August 29, 2024 and sell it today you would lose (942.00) from holding Eros International Media or give up 38.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 14.43% |
| Values | Daily Returns |
Baazar Style Retail vs. Eros International Media
Performance |
| Timeline |
| Baazar Style Retail |
| Eros International Media |
Baazar Style and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and Eros International
The main advantage of trading using opposite Baazar Style and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style 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.| Baazar Style vs. Reliance Industries Limited | Baazar Style vs. Tata Consultancy Services | Baazar Style vs. HDFC Bank Limited | Baazar Style vs. Bharti Airtel Limited |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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