Correlation Between Santeon and Eline Entertainment
Can any of the company-specific risk be diversified away by investing in both Santeon and Eline Entertainment 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 Santeon and Eline Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santeon Group and Eline Entertainment Group, you can compare the effects of market volatilities on Santeon and Eline Entertainment 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 Santeon with a short position of Eline Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santeon and Eline Entertainment.
Diversification Opportunities for Santeon and Eline Entertainment
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Santeon and Eline is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Santeon Group and Eline Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eline Entertainment and Santeon 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 Santeon Group are associated (or correlated) with Eline Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eline Entertainment has no effect on the direction of Santeon i.e., Santeon and Eline Entertainment go up and down completely randomly.
Pair Corralation between Santeon and Eline Entertainment
Given the investment horizon of 90 days Santeon Group is expected to under-perform the Eline Entertainment. But the pink sheet apears to be less risky and, when comparing its historical volatility, Santeon Group is 14.81 times less risky than Eline Entertainment. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Eline Entertainment Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. 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 |
Santeon Group vs. Eline Entertainment Group
Performance |
| Timeline |
| Santeon Group |
| Eline Entertainment |
Santeon and Eline Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santeon and Eline Entertainment
The main advantage of trading using opposite Santeon and Eline Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santeon position performs unexpectedly, Eline Entertainment 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 Eline Entertainment will offset losses from the drop in Eline Entertainment's long position.| Santeon vs. Eline Entertainment Group | Santeon vs. Green Leaf Innovations | Santeon vs. Plandai Biotech | Santeon vs. All American Gld |
| Eline Entertainment vs. Icon Media Holdings | Eline Entertainment vs. Green Leaf Innovations | Eline Entertainment vs. Plandai Biotech | Eline Entertainment 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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