Correlation Between Eline Entertainment and Sanwire
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment and Sanwire 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 Sanwire 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 Sanwire, you can compare the effects of market volatilities on Eline Entertainment and Sanwire 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 Sanwire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Sanwire.
Diversification Opportunities for Eline Entertainment and Sanwire
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eline and Sanwire is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and Sanwire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanwire 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 Sanwire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanwire has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and Sanwire go up and down completely randomly.
Pair Corralation between Eline Entertainment and Sanwire
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 2.44 times more return on investment than Sanwire. However, Eline Entertainment is 2.44 times more volatile than Sanwire. It trades about 0.19 of its potential returns per unit of risk. Sanwire is currently generating about 0.14 per unit of risk. If you would invest 0.02 in Eline Entertainment Group on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Eline Entertainment Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eline Entertainment Group vs. Sanwire
Performance |
| Timeline |
| Eline Entertainment |
| Sanwire |
Eline Entertainment and Sanwire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Sanwire
The main advantage of trading using opposite Eline Entertainment and Sanwire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment position performs unexpectedly, Sanwire 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 Sanwire will offset losses from the drop in Sanwire'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 |
| Sanwire vs. Deere Company | Sanwire vs. Caterpillar | Sanwire vs. Lion Electric Corp | Sanwire vs. Nikola Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |