Pair Correlation Between Eros International and DHX Media

This module allows you to analyze existing cross correlation between Eros International Plc and DHX Media Ltd. You can compare the effects of market volatilities on Eros International and DHX Media 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 Eros International with a short position of DHX Media. See also your portfolio center. Please also check ongoing floating volatility patterns of Eros International and DHX Media.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Eros International Plc  vs   DHX Media Ltd
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Eros International Plc is expected to generate 0.9 times more return on investment than DHX Media. However, Eros International Plc is 1.11 times less risky than DHX Media. It trades about -0.12 of its potential returns per unit of risk. DHX Media Ltd is currently generating about -0.39 per unit of risk. If you would invest  1,355  in Eros International Plc on September 23, 2017 and sell it today you would lose (160)  from holding Eros International Plc or give up 11.81% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Eros International and DHX Media
-0.21

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Eros International Plc and DHX Media Ltd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DHX Media Ltd and Eros International 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 Eros International Plc are associated (or correlated) with DHX Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHX Media Ltd has no effect on the direction of Eros International i.e. Eros International and DHX Media go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Eros International Plc

  
0 

Risk-Adjusted Performance

Over the last 30 days Eros International Plc has generated negative risk-adjusted returns adding no value to investors with long positions.

DHX Media Ltd

  
0 

Risk-Adjusted Performance

Over the last 30 days DHX Media Ltd has generated negative risk-adjusted returns adding no value to investors with long positions.