Correlation Between State Trading and Swan Energy
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By analyzing existing cross correlation between The State Trading and Swan Energy Limited, you can compare the effects of market volatilities on State Trading 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 State Trading with a short position of Swan Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and Swan Energy.
Diversification Opportunities for State Trading and Swan Energy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Swan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading 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 State Trading 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 The State Trading 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 State Trading i.e., State Trading and Swan Energy go up and down completely randomly.
Pair Corralation between State Trading and Swan Energy
Assuming the 90 days trading horizon State Trading is expected to generate 3.94 times less return on investment than Swan Energy. In addition to that, State Trading is 1.23 times more volatile than Swan Energy Limited. It trades about 0.08 of its total potential returns per unit of risk. Swan Energy Limited is currently generating about 0.37 per unit of volatility. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The State Trading vs. Swan Energy Limited
Performance |
| Timeline |
| State Trading |
| Swan Energy Limited |
State Trading and Swan Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and Swan Energy
The main advantage of trading using opposite State Trading and Swan Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading 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.| State Trading vs. Kingfa Science Technology | State Trading vs. Dev Information Technology | State Trading vs. Uniinfo Telecom Services | State Trading vs. Shyam Telecom Limited |
| Swan Energy vs. EIH Associated Hotels | Swan Energy vs. Ratnamani Metals Tubes | Swan Energy vs. Taj GVK Hotels | Swan Energy vs. Alkali Metals Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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