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.
 Time 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 1.43 times more return on investment than DHX Media. However, Eros International is 1.43 times more volatile than DHX Media Ltd. It trades about 0.3 of its potential returns per unit of risk. DHX Media Ltd is currently generating about 0.21 per unit of risk. If you would invest  920  in Eros International Plc on December 20, 2017 and sell it today you would earn a total of  180  from holding Eros International Plc or generate 19.57% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Eros International and DHX Media
0.62

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor 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

  
19 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Eros International Plc are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.

DHX Media Ltd

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DHX Media Ltd are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.