Correlation Between All For and Seven Arts

Can any of the company-specific risk be diversified away by investing in both All For 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 All For and Seven Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All For One and Seven Arts Entertainment, you can compare the effects of market volatilities on All For 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 All For with a short position of Seven Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of All For and Seven Arts.

Diversification Opportunities for All For and Seven Arts

0.0

Correlation Coefficient

All For  Seven Arts

Pay attention - limited upside

The 3 months correlation between All and Seven is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding All For One 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 All For 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 All For One 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 All For i.e., All For and Seven Arts go up and down completely randomly.

Pair Corralation between All For and Seven Arts

If you would invest  0.05  in Seven Arts Entertainment on September 3, 2024 and sell it today you would lose (0.01) from holding Seven Arts Entertainment or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

All For One  vs.  Seven Arts Entertainment

All For One

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days All For One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, All For is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Seven Arts Entertainment

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Seven Arts Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Seven Arts showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with All For and Seven Arts

The main advantage of trading using opposite All For and Seven Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All For 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 All For One 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.