Correlation Between Entertainment Network and Swan Energy
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By analyzing existing cross correlation between Entertainment Network Limited and Swan Energy Limited, you can compare the effects of market volatilities on Entertainment Network and Swan Energy 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 Swan Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entertainment Network and Swan Energy.
Diversification Opportunities for Entertainment Network and Swan Energy
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Entertainment and Swan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Entertainment Network Limited and Swan Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Energy Limited 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 Swan Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Energy Limited has no effect on the direction of Entertainment Network i.e., Entertainment Network and Swan Energy go up and down completely randomly.
Pair Corralation between Entertainment Network and Swan Energy
Assuming the 90 days trading horizon Entertainment Network Limited is expected to under-perform the Swan Energy. But the stock apears to be less risky and, when comparing its historical volatility, Entertainment Network Limited is 1.63 times less risky than Swan Energy. The stock trades about -0.07 of its potential returns per unit of risk. The Swan Energy Limited is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 48,415 in Swan Energy Limited on September 4, 2024 and sell it today you would earn a total of 15,250 from holding Swan Energy Limited or generate 31.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entertainment Network Limited vs. Swan Energy Limited
Performance |
| Timeline |
| Entertainment Network |
| Swan Energy Limited |
Entertainment Network and Swan Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entertainment Network and Swan Energy
The main advantage of trading using opposite Entertainment Network and Swan Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entertainment Network position performs unexpectedly, Swan Energy 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 Swan Energy will offset losses from the drop in Swan Energy's long position.| Entertainment Network vs. LLOYDS METALS AND | Entertainment Network vs. TPL Plastech Limited | Entertainment Network vs. Arrow Greentech Limited | Entertainment Network vs. Transport of |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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