Correlation Between All For and Sanwire

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

Diversification Opportunities for All For and Sanwire

0.0

Correlation Coefficient

All For  Sanwire

Pay attention - limited upside

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

Pair Corralation between All For and Sanwire

If you would invest  0.03  in Sanwire on December 28, 2024 and sell it today you would lose (0.01) from holding Sanwire or give up 33.33% 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.  Sanwire

All For One

Risk-Adjusted Performance

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 latest stock price disarray, may contribute to short-term losses for the investors.

Sanwire

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sanwire has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively conflicting basic indicators, Sanwire may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with All For and Sanwire

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

The idea behind All For One and Sanwire 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.