Correlation Between Hathway Cable and Entertainment Network
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By analyzing existing cross correlation between Hathway Cable Datacom and Entertainment Network Limited, you can compare the effects of market volatilities on Hathway Cable and Entertainment Network 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 Hathway Cable with a short position of Entertainment Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hathway Cable and Entertainment Network.
Diversification Opportunities for Hathway Cable and Entertainment Network
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hathway and Entertainment is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hathway Cable Datacom and Entertainment Network Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entertainment Network and Hathway Cable 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 Hathway Cable Datacom are associated (or correlated) with Entertainment Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entertainment Network has no effect on the direction of Hathway Cable i.e., Hathway Cable and Entertainment Network go up and down completely randomly.
Pair Corralation between Hathway Cable and Entertainment Network
Assuming the 90 days trading horizon Hathway Cable is expected to generate 5.56 times less return on investment than Entertainment Network. But when comparing it to its historical volatility, Hathway Cable Datacom is 1.28 times less risky than Entertainment Network. It trades about 0.01 of its potential returns per unit of risk. Entertainment Network Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13,074 in Entertainment Network Limited on November 8, 2024 and sell it today you would earn a total of 2,747 from holding Entertainment Network Limited or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.39% |
| Values | Daily Returns |
Hathway Cable Datacom vs. Entertainment Network Limited
Performance |
| Timeline |
| Hathway Cable Datacom |
| Entertainment Network |
Hathway Cable and Entertainment Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hathway Cable and Entertainment Network
The main advantage of trading using opposite Hathway Cable and Entertainment Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hathway Cable position performs unexpectedly, Entertainment Network 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 Entertainment Network will offset losses from the drop in Entertainment Network's long position.| Hathway Cable vs. Sonata Software Limited | Hathway Cable vs. Compucom Software Limited | Hathway Cable vs. Nucleus Software Exports | Hathway Cable vs. ROUTE MOBILE LIMITED |
| Entertainment Network vs. Syrma SGS Technology | Entertainment Network vs. R S Software | Entertainment Network vs. Bodhi Tree Multimedia | Entertainment Network vs. Kingfa Science Technology |
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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