Correlation Between Tata Investment and Eros International
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By analyzing existing cross correlation between Tata Investment and Eros International Media, you can compare the effects of market volatilities on Tata Investment 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 Tata Investment with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tata Investment and Eros International.
Diversification Opportunities for Tata Investment and Eros International
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tata and Eros is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Tata Investment 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 Tata Investment 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 Tata Investment 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 Tata Investment i.e., Tata Investment and Eros International go up and down completely randomly.
Pair Corralation between Tata Investment and Eros International
Assuming the 90 days trading horizon Tata Investment is expected to generate 0.91 times more return on investment than Eros International. However, Tata Investment is 1.1 times less risky than Eros International. It trades about 0.01 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 681,411 in Tata Investment on September 20, 2024 and sell it today you would lose (9,401) from holding Tata Investment or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tata Investment vs. Eros International Media
Performance |
| Timeline |
| Tata Investment |
| Eros International Media |
Tata Investment and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tata Investment and Eros International
The main advantage of trading using opposite Tata Investment and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tata Investment 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.| Tata Investment vs. Niraj Ispat Industries | Tata Investment vs. UCO Bank | Tata Investment vs. Bank of Maharashtra | Tata Investment vs. General Insurance |
| Eros International vs. AUTHUM INVESTMENT INFRASTRUCTU | Eros International vs. Dhunseri Investments Limited | Eros International vs. Reliance Home Finance | Eros International vs. Tata Investment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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