Correlation Between Prime Focus and Entertainment Network
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By analyzing existing cross correlation between Prime Focus Limited and Entertainment Network Limited, you can compare the effects of market volatilities on Prime Focus 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 Prime Focus with a short position of Entertainment Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Focus and Entertainment Network.
Diversification Opportunities for Prime Focus and Entertainment Network
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prime and Entertainment is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Prime Focus Limited and Entertainment Network Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entertainment Network and Prime Focus 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 Prime Focus Limited 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 Prime Focus i.e., Prime Focus and Entertainment Network go up and down completely randomly.
Pair Corralation between Prime Focus and Entertainment Network
Assuming the 90 days trading horizon Prime Focus Limited is expected to generate 1.45 times more return on investment than Entertainment Network. However, Prime Focus is 1.45 times more volatile than Entertainment Network Limited. It trades about 0.05 of its potential returns per unit of risk. Entertainment Network Limited is currently generating about -0.1 per unit of risk. If you would invest 12,584 in Prime Focus Limited on September 21, 2024 and sell it today you would earn a total of 301.00 from holding Prime Focus Limited or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Focus Limited vs. Entertainment Network Limited
Performance |
| Timeline |
| Prime Focus Limited |
| Entertainment Network |
Prime Focus and Entertainment Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Focus and Entertainment Network
The main advantage of trading using opposite Prime Focus and Entertainment Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Focus 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.| Prime Focus vs. Shemaroo Entertainment Limited | Prime Focus vs. Entertainment Network Limited | Prime Focus vs. Cyber Media Research | Prime Focus vs. Next Mediaworks Limited |
| Entertainment Network vs. Kewal Kiran Clothing | Entertainment Network vs. 21st Century Management | Entertainment Network vs. Iris Clothings Limited | Entertainment Network vs. Electronics Mart India |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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