Correlation Between Global Health and E2E Networks
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By analyzing existing cross correlation between Global Health Limited and E2E Networks Limited, you can compare the effects of market volatilities on Global Health and E2E Networks 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 Global Health with a short position of E2E Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and E2E Networks.
Diversification Opportunities for Global Health and E2E Networks
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and E2E is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Global Health Limited and E2E Networks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E2E Networks Limited and Global Health 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 Global Health Limited are associated (or correlated) with E2E Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E2E Networks Limited has no effect on the direction of Global Health i.e., Global Health and E2E Networks go up and down completely randomly.
Pair Corralation between Global Health and E2E Networks
Assuming the 90 days trading horizon Global Health Limited is expected to under-perform the E2E Networks. But the stock apears to be less risky and, when comparing its historical volatility, Global Health Limited is 1.97 times less risky than E2E Networks. The stock trades about -0.29 of its potential returns per unit of risk. The E2E Networks Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 421,740 in E2E Networks Limited on October 10, 2024 and sell it today you would earn a total of 8,390 from holding E2E Networks Limited or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health Limited vs. E2E Networks Limited
Performance |
| Timeline |
| Global Health Limited |
| E2E Networks Limited |
Global Health and E2E Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and E2E Networks
The main advantage of trading using opposite Global Health and E2E Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, E2E Networks 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 E2E Networks will offset losses from the drop in E2E Networks' long position.| Global Health vs. UltraTech Cement Limited | Global Health vs. DMCC SPECIALITY CHEMICALS | Global Health vs. Privi Speciality Chemicals | Global Health vs. Fertilizers and Chemicals |
| E2E Networks vs. Zuari Agro Chemicals | E2E Networks vs. Mangalore Chemicals Fertilizers | E2E Networks vs. Privi Speciality Chemicals | E2E Networks vs. DMCC SPECIALITY CHEMICALS |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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