Correlation Between Big Screen and SNM Gobal

Can any of the company-specific risk be diversified away by investing in both Big Screen and SNM Gobal 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 Big Screen and SNM Gobal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Big Screen Entertainment and SNM Gobal Holdings, you can compare the effects of market volatilities on Big Screen and SNM Gobal 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 Big Screen with a short position of SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Screen and SNM Gobal.

Diversification Opportunities for Big Screen and SNM Gobal

0.0

Correlation Coefficient

Big Screen  SNM Gobal

Pay attention - limited upside

The 3 months correlation between Big and SNM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Big Screen Entertainment and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings and Big Screen 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 Big Screen Entertainment are associated (or correlated) with SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Big Screen i.e., Big Screen and SNM Gobal go up and down completely randomly.

Pair Corralation between Big Screen and SNM Gobal

If you would invest  2.00  in Big Screen Entertainment on September 21, 2024 and sell it today you would earn a total of  0.00  from holding Big Screen Entertainment or generate 0.0% return on investment over 90 days.

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

Big Screen Entertainment  vs.  SNM Gobal Holdings

Big Screen Entertainment

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Big Screen Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Big Screen reported solid returns over the last few months and may actually be approaching a breakup point.

SNM Gobal Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SNM Gobal Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Big Screen and SNM Gobal

The main advantage of trading using opposite Big Screen and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Screen position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.

The idea behind Big Screen Entertainment and SNM Gobal Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.