Correlation Between Seven Arts and All For

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

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

Diversification Opportunities for Seven Arts and All For

0.0

Correlation Coefficient

Seven Arts  All For

Pay attention - limited upside

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

Pair Corralation between Seven Arts and All For

If you would invest  0.02  in Seven Arts Entertainment on December 26, 2024 and sell it today you would earn a total of  0.03  from holding Seven Arts Entertainment or generate 150.0% return on investment over 90 days.

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

Seven Arts Entertainment  vs.  All For One

Seven Arts Entertainment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Seven Arts Entertainment are ranked lower than 12 (%) 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.

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.

Pair Trading with Seven Arts and All For

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

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.