Correlation Between SNM Gobal and Seven Arts
Can any of the company-specific risk be diversified away by investing in both SNM Gobal and Seven Arts 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 SNM Gobal and Seven Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNM Gobal Holdings and Seven Arts Entertainment, you can compare the effects of market volatilities on SNM Gobal and Seven Arts 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 SNM Gobal with a short position of Seven Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNM Gobal and Seven Arts.
Diversification Opportunities for SNM Gobal and Seven Arts
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SNM and Seven is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SNM Gobal Holdings and Seven Arts Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven Arts Entertainment and SNM Gobal 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 SNM Gobal Holdings are associated (or correlated) with Seven Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven Arts Entertainment has no effect on the direction of SNM Gobal i.e., SNM Gobal and Seven Arts go up and down completely randomly.
Pair Corralation between SNM Gobal and Seven Arts
Given the investment horizon of 90 days SNM Gobal Holdings is expected to generate 14.07 times more return on investment than Seven Arts. However, SNM Gobal is 14.07 times more volatile than Seven Arts Entertainment. It trades about 0.31 of its potential returns per unit of risk. Seven Arts Entertainment is currently generating about 0.07 per unit of risk. If you would invest 0.01 in SNM Gobal Holdings on October 31, 2024 and sell it today you would earn a total of 0.00 from holding SNM Gobal Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNM Gobal Holdings vs. Seven Arts Entertainment
Performance |
| Timeline |
| SNM Gobal Holdings |
| Seven Arts Entertainment |
SNM Gobal and Seven Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNM Gobal and Seven Arts
The main advantage of trading using opposite SNM Gobal and Seven Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNM Gobal position performs unexpectedly, Seven Arts 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 Seven Arts will offset losses from the drop in Seven Arts' long position.The idea behind SNM Gobal Holdings and Seven Arts Entertainment 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.| Seven Arts vs. JPX Global | Seven Arts vs. Intl Star | Seven Arts vs. Indo Global Exchange | Seven Arts vs. Active Health Foods |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |