Correlation Between SNM Gobal and Big Screen

Can any of the company-specific risk be diversified away by investing in both SNM Gobal and Big Screen 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 Big Screen 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 Big Screen Entertainment, you can compare the effects of market volatilities on SNM Gobal and Big Screen 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 Big Screen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNM Gobal and Big Screen.

Diversification Opportunities for SNM Gobal and Big Screen

0.0

Correlation Coefficient

SNM Gobal  Big Screen

Pay attention - limited upside

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

Pair Corralation between SNM Gobal and Big Screen

If you would invest  1.91  in Big Screen Entertainment on September 30, 2024 and sell it today you would earn a total of  0.09  from holding Big Screen Entertainment or generate 4.71% return on investment over 90 days.

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

SNM Gobal Holdings  vs.  Big Screen Entertainment

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 very healthy primary indicators, SNM Gobal is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Big Screen Entertainment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Big Screen Entertainment are ranked lower than 5 (%) 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.

Pair Trading with SNM Gobal and Big Screen

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

The idea behind SNM Gobal Holdings and Big Screen 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.