Correlation Between Eline Entertainment and Santeon
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment and Santeon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eline Entertainment and Santeon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eline Entertainment Group and Santeon Group, you can compare the effects of market volatilities on Eline Entertainment and Santeon 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 Eline Entertainment with a short position of Santeon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Santeon.
Diversification Opportunities for Eline Entertainment and Santeon
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eline and Santeon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and Santeon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santeon Group and Eline Entertainment 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 Eline Entertainment Group are associated (or correlated) with Santeon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santeon Group has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and Santeon go up and down completely randomly.
Pair Corralation between Eline Entertainment and Santeon
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 14.81 times more return on investment than Santeon. However, Eline Entertainment is 14.81 times more volatile than Santeon Group. It trades about 0.24 of its potential returns per unit of risk. Santeon Group is currently generating about -0.22 per unit of risk. If you would invest 0.01 in Eline Entertainment Group on September 3, 2024 and sell it today you would earn a total of 0.01 from holding Eline Entertainment Group or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eline Entertainment Group vs. Santeon Group
Performance |
| Timeline |
| Eline Entertainment |
| Santeon Group |
Eline Entertainment and Santeon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Santeon
The main advantage of trading using opposite Eline Entertainment and Santeon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment position performs unexpectedly, Santeon 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 Santeon will offset losses from the drop in Santeon's long position.| Eline Entertainment vs. Icon Media Holdings | Eline Entertainment vs. Green Leaf Innovations | Eline Entertainment vs. Plandai Biotech | Eline Entertainment vs. All American Gld |
| Santeon vs. Eline Entertainment Group | Santeon vs. Green Leaf Innovations | Santeon vs. Plandai Biotech | Santeon vs. All American Gld |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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