Correlation Between Samart Digital and Major Cineplex

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

By analyzing existing cross correlation between Samart Digital Public and Major Cineplex Group, you can compare the effects of market volatilities on Samart Digital and Major Cineplex 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 Samart Digital with a short position of Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samart Digital and Major Cineplex.

Diversification Opportunities for Samart Digital and Major Cineplex

0.0

Correlation Coefficient

Samart Digital  Major Cineplex

Pay attention - limited upside

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

Pair Corralation between Samart Digital and Major Cineplex

If you would invest  0.00  in Samart Digital Public on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Samart Digital Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Samart Digital Public  vs.  Major Cineplex Group

Samart Digital Public

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Samart Digital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Samart Digital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Major Cineplex Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Major Cineplex Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Major Cineplex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Samart Digital and Major Cineplex

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

The idea behind Samart Digital Public and Major Cineplex Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.