Correlation Between Swan Energy and Entertainment Network
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By analyzing existing cross correlation between Swan Energy Limited and Entertainment Network Limited, you can compare the effects of market volatilities on Swan Energy 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 Swan Energy with a short position of Entertainment Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swan Energy and Entertainment Network.
Diversification Opportunities for Swan Energy and Entertainment Network
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Swan and Entertainment is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Swan Energy 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 Swan Energy 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 Swan Energy 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 Swan Energy i.e., Swan Energy and Entertainment Network go up and down completely randomly.
Pair Corralation between Swan Energy and Entertainment Network
Assuming the 90 days trading horizon Swan Energy Limited is expected to generate 1.0 times more return on investment than Entertainment Network. However, Swan Energy Limited is 1.0 times less risky than Entertainment Network. It trades about 0.11 of its potential returns per unit of risk. Entertainment Network Limited is currently generating about 0.05 per unit of risk. If you would invest 23,513 in Swan Energy Limited on September 12, 2024 and sell it today you would earn a total of 48,017 from holding Swan Energy Limited or generate 204.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swan Energy Limited vs. Entertainment Network Limited
Performance |
| Timeline |
| Swan Energy Limited |
| Entertainment Network |
Swan Energy and Entertainment Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swan Energy and Entertainment Network
The main advantage of trading using opposite Swan Energy and Entertainment Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swan Energy 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.| Swan Energy vs. Punjab National Bank | Swan Energy vs. Hindustan Media Ventures | Swan Energy vs. Hathway Cable Datacom | Swan Energy vs. General Insurance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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