Correlation Between Screaming Eagle and Signal Hill
Can any of the company-specific risk be diversified away by investing in both Screaming Eagle and Signal Hill 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 Screaming Eagle and Signal Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Screaming Eagle Acquisition and Signal Hill Acquisition, you can compare the effects of market volatilities on Screaming Eagle and Signal Hill 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 Screaming Eagle with a short position of Signal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Screaming Eagle and Signal Hill.
Diversification Opportunities for Screaming Eagle and Signal Hill
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Screaming and Signal is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Screaming Eagle Acquisition and Signal Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signal Hill Acquisition and Screaming Eagle 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 Screaming Eagle Acquisition are associated (or correlated) with Signal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signal Hill Acquisition has no effect on the direction of Screaming Eagle i.e., Screaming Eagle and Signal Hill go up and down completely randomly.
Pair Corralation between Screaming Eagle and Signal Hill
If you would invest 1,042 in Signal Hill Acquisition on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Signal Hill Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Screaming Eagle Acquisition vs. Signal Hill Acquisition
Performance |
| Timeline |
| Screaming Eagle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Signal Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Screaming Eagle and Signal Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Screaming Eagle and Signal Hill
The main advantage of trading using opposite Screaming Eagle and Signal Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Screaming Eagle position performs unexpectedly, Signal Hill 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 Signal Hill will offset losses from the drop in Signal Hill's long position.The idea behind Screaming Eagle Acquisition and Signal Hill Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |