Correlation Between Shigan Quantum and Eros International

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Can any of the company-specific risk be diversified away by investing in both Shigan Quantum and Eros International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shigan Quantum and Eros International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shigan Quantum Tech and Eros International Media, you can compare the effects of market volatilities on Shigan Quantum 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 Shigan Quantum with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shigan Quantum and Eros International.

Diversification Opportunities for Shigan Quantum and Eros International

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Shigan and Eros is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shigan Quantum Tech 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 Shigan Quantum 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 Shigan Quantum Tech 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 Shigan Quantum i.e., Shigan Quantum and Eros International go up and down completely randomly.

Pair Corralation between Shigan Quantum and Eros International

Assuming the 90 days trading horizon Shigan Quantum Tech is expected to generate 1.29 times more return on investment than Eros International. However, Shigan Quantum is 1.29 times more volatile than Eros International Media. It trades about 0.02 of its potential returns per unit of risk. Eros International Media is currently generating about -0.08 per unit of risk. If you would invest  11,800  in Shigan Quantum Tech on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Shigan Quantum Tech or generate 0.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy20.63%
ValuesDaily Returns

Shigan Quantum Tech  vs.  Eros International Media

 Performance 
       Timeline  
Shigan Quantum Tech 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Shigan Quantum Tech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Shigan Quantum is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Eros International Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eros International Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Shigan Quantum and Eros International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shigan Quantum and Eros International

The main advantage of trading using opposite Shigan Quantum and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shigan Quantum 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.
The idea behind Shigan Quantum Tech and Eros International Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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