Correlation Between Sanwire and All For

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

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

Diversification Opportunities for Sanwire and All For

-0.06

Correlation Coefficient

Sanwire  All For

Good diversification

The 3 months correlation between Sanwire and All is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sanwire and All For One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All For One and Sanwire 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 Sanwire are associated (or correlated) with All For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All For One has no effect on the direction of Sanwire i.e., Sanwire and All For go up and down completely randomly.

Pair Corralation between Sanwire and All For

Given the investment horizon of 90 days Sanwire is expected to generate 5.45 times less return on investment than All For. But when comparing it to its historical volatility, Sanwire is 4.73 times less risky than All For. It trades about 0.09 of its potential returns per unit of risk. All For One is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.00  in All For One on October 1, 2024 and sell it today you would earn a total of  0.01  from holding All For One or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.73%
Values	Daily Returns

Sanwire  vs.  All For One

Sanwire

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sanwire are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Sanwire reported solid returns over the last few months and may actually be approaching a breakup point.

All For One

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in All For One are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, All For displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sanwire and All For

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

The idea behind Sanwire and All For One 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.