Correlation Between Entertainment Network and Whirlpool
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By analyzing existing cross correlation between Entertainment Network Limited and Whirlpool of India, you can compare the effects of market volatilities on Entertainment Network and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entertainment Network and Whirlpool.
Diversification Opportunities for Entertainment Network and Whirlpool
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Entertainment and Whirlpool is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Entertainment Network Limited and Whirlpool of India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool of India 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool of India has no effect on the direction of Entertainment Network i.e., Entertainment Network and Whirlpool go up and down completely randomly.
Pair Corralation between Entertainment Network and Whirlpool
Assuming the 90 days trading horizon Entertainment Network is expected to generate 1.79 times less return on investment than Whirlpool. In addition to that, Entertainment Network is 1.69 times more volatile than Whirlpool of India. It trades about 0.01 of its total potential returns per unit of risk. Whirlpool of India is currently generating about 0.05 per unit of volatility. If you would invest 158,151 in Whirlpool of India on September 15, 2024 and sell it today you would earn a total of 33,149 from holding Whirlpool of India or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.88% |
| Values | Daily Returns |
Entertainment Network Limited vs. Whirlpool of India
Performance |
| Timeline |
| Entertainment Network |
| Whirlpool of India |
Entertainment Network and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entertainment Network and Whirlpool
The main advantage of trading using opposite Entertainment Network and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entertainment Network position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Entertainment Network vs. Repco Home Finance | Entertainment Network vs. FCS Software Solutions | Entertainment Network vs. Arrow Greentech Limited | Entertainment Network vs. Sasken Technologies Limited |
| Whirlpool vs. Entertainment Network Limited | Whirlpool vs. Shemaroo Entertainment Limited | Whirlpool vs. Infomedia Press Limited | Whirlpool vs. Bharatiya Global Infomedia |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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