Correlation Between Entertainment Network and Page Industries
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By analyzing existing cross correlation between Entertainment Network Limited and Page Industries Limited, you can compare the effects of market volatilities on Entertainment Network and Page Industries 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 Entertainment Network with a short position of Page Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entertainment Network and Page Industries.
Diversification Opportunities for Entertainment Network and Page Industries
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Entertainment and Page is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Entertainment Network Limited and Page Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Page Industries and Entertainment Network 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 Entertainment Network Limited are associated (or correlated) with Page Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Page Industries has no effect on the direction of Entertainment Network i.e., Entertainment Network and Page Industries go up and down completely randomly.
Pair Corralation between Entertainment Network and Page Industries
Assuming the 90 days trading horizon Entertainment Network Limited is expected to under-perform the Page Industries. In addition to that, Entertainment Network is 1.65 times more volatile than Page Industries Limited. It trades about -0.46 of its total potential returns per unit of risk. Page Industries Limited is currently generating about -0.28 per unit of volatility. If you would invest 4,923,690 in Page Industries Limited on October 16, 2024 and sell it today you would lose (332,530) from holding Page Industries Limited or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Entertainment Network Limited vs. Page Industries Limited
Performance |
| Timeline |
| Entertainment Network |
| Page Industries |
Entertainment Network and Page Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entertainment Network and Page Industries
The main advantage of trading using opposite Entertainment Network and Page Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entertainment Network position performs unexpectedly, Page Industries 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 Page Industries will offset losses from the drop in Page Industries' long position.The idea behind Entertainment Network Limited and Page Industries Limited 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.
| Page Industries vs. California Software | Page Industries vs. Entertainment Network Limited | Page Industries vs. Kaynes Technology India | Page Industries vs. Nucleus Software Exports |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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