Correlation Between Sycamore Entmt and SNM Gobal

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

Diversification Opportunities for Sycamore Entmt and SNM Gobal

-0.67

Correlation Coefficient

Sycamore Entmt  SNM Gobal

Excellent diversification

The 3 months correlation between Sycamore and SNM is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Sycamore Entmt i.e., Sycamore Entmt and SNM Gobal go up and down completely randomly.

Pair Corralation between Sycamore Entmt and SNM Gobal

Given the investment horizon of 90 days Sycamore Entmt is expected to generate 51.89 times less return on investment than SNM Gobal. But when comparing it to its historical volatility, Sycamore Entmt Grp is 10.03 times less risky than SNM Gobal. It trades about 0.03 of its potential returns per unit of risk. SNM Gobal Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.00  in SNM Gobal Holdings on December 27, 2024 and sell it today you would earn a total of  0.01  from holding SNM Gobal Holdings or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	87.1%
Values	Daily Returns

Sycamore Entmt Grp  vs.  SNM Gobal Holdings

Sycamore Entmt Grp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sycamore Entmt Grp are ranked lower than 2 (%) 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.

SNM Gobal Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SNM Gobal Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, SNM Gobal displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sycamore Entmt and SNM Gobal

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

The idea behind Sycamore Entmt Grp and SNM Gobal 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 CEOs Directory module to screen CEOs from public companies around the world.