Correlation Between Delfingen and Synergie
Can any of the company-specific risk be diversified away by investing in both Delfingen and Synergie 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 Delfingen and Synergie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delfingen and Synergie SE, you can compare the effects of market volatilities on Delfingen and Synergie 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 Delfingen with a short position of Synergie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delfingen and Synergie.
Diversification Opportunities for Delfingen and Synergie
Poor diversification
The 3 months correlation between Delfingen and Synergie is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Delfingen and Synergie SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synergie SE and Delfingen 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 Delfingen are associated (or correlated) with Synergie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synergie SE has no effect on the direction of Delfingen i.e., Delfingen and Synergie go up and down completely randomly.
Pair Corralation between Delfingen and Synergie
Assuming the 90 days trading horizon Delfingen is expected to under-perform the Synergie. In addition to that, Delfingen is 1.77 times more volatile than Synergie SE. It trades about -0.54 of its total potential returns per unit of risk. Synergie SE is currently generating about -0.43 per unit of volatility. If you would invest 3,040 in Synergie SE on August 29, 2024 and sell it today you would lose (290.00) from holding Synergie SE or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delfingen vs. Synergie SE
Performance |
| Timeline |
| Delfingen |
| Synergie SE |
Delfingen and Synergie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delfingen and Synergie
The main advantage of trading using opposite Delfingen and Synergie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delfingen position performs unexpectedly, Synergie 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 Synergie will offset losses from the drop in Synergie's long position.| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana Group |
Check out your portfolio center.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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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