Correlation Between Sycamore Entmt and Global Entertainment

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

By analyzing existing cross correlation between Sycamore Entmt Grp and Global Entertainment Holdings, you can compare the effects of market volatilities on Sycamore Entmt and Global Entertainment 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 Sycamore Entmt with a short position of Global Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sycamore Entmt and Global Entertainment.

Diversification Opportunities for Sycamore Entmt and Global Entertainment

0.07

Correlation Coefficient

Sycamore Entmt  Global Entertainment

Significant diversification

The 3 months correlation between Sycamore and Global is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp and Global Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Entertainment and Sycamore Entmt 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 Sycamore Entmt Grp are associated (or correlated) with Global Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Entertainment has no effect on the direction of Sycamore Entmt i.e., Sycamore Entmt and Global Entertainment go up and down completely randomly.

Pair Corralation between Sycamore Entmt and Global Entertainment

If you would invest  0.01  in Global Entertainment Holdings on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Global Entertainment Holdings or generate 0.0% return on investment over 90 days.

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

Sycamore Entmt Grp  vs.  Global Entertainment Holdings

Sycamore Entmt Grp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sycamore Entmt Grp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, Sycamore Entmt demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Global Entertainment

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Entertainment Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical indicators, Global Entertainment disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sycamore Entmt and Global Entertainment

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

The idea behind Sycamore Entmt Grp and Global Entertainment Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.