Correlation Between Goliath Film and Sanwire
Can any of the company-specific risk be diversified away by investing in both Goliath Film 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 Goliath Film and Sanwire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Film and and Sanwire, you can compare the effects of market volatilities on Goliath Film 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 Goliath Film with a short position of Sanwire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Film and Sanwire.
Diversification Opportunities for Goliath Film and Sanwire
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goliath and Sanwire is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Film and and Sanwire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanwire and Goliath Film 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 Goliath Film and 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 Goliath Film i.e., Goliath Film and Sanwire go up and down completely randomly.
Pair Corralation between Goliath Film and Sanwire
Given the investment horizon of 90 days Goliath Film and is expected to under-perform the Sanwire. But the pink sheet apears to be less risky and, when comparing its historical volatility, Goliath Film and is 3.08 times less risky than Sanwire. The pink sheet trades about -0.3 of its potential returns per unit of risk. The Sanwire is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Sanwire on September 12, 2024 and sell it today you would earn a total of 0.01 from holding Sanwire or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goliath Film and vs. Sanwire
Performance |
| Timeline |
| Goliath Film |
| Sanwire |
Goliath Film and Sanwire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Film and Sanwire
The main advantage of trading using opposite Goliath Film and Sanwire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Film 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.| Goliath Film vs. Papaya Growth Opportunity | Goliath Film vs. HUMANA INC | Goliath Film vs. Barloworld Ltd ADR | Goliath Film vs. Morningstar Unconstrained Allocation |
| Sanwire vs. SNM Gobal Holdings | Sanwire vs. All For One | Sanwire vs. Ggtoor Inc | Sanwire vs. Hanover House |
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 Stocks Directory module to find actively traded stocks across global markets.
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