Correlation Between Bloom Select and Symphony Floating
Can any of the company-specific risk be diversified away by investing in both Bloom Select and Symphony Floating 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 Bloom Select and Symphony Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Select Income and Symphony Floating Rate, you can compare the effects of market volatilities on Bloom Select and Symphony Floating 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 Bloom Select with a short position of Symphony Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and Symphony Floating.
Diversification Opportunities for Bloom Select and Symphony Floating
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloom and Symphony is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and Symphony Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Floating Rate and Bloom Select 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 Bloom Select Income are associated (or correlated) with Symphony Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Floating Rate has no effect on the direction of Bloom Select i.e., Bloom Select and Symphony Floating go up and down completely randomly.
Pair Corralation between Bloom Select and Symphony Floating
Assuming the 90 days trading horizon Bloom Select Income is expected to under-perform the Symphony Floating. In addition to that, Bloom Select is 3.66 times more volatile than Symphony Floating Rate. It trades about -0.11 of its total potential returns per unit of risk. Symphony Floating Rate is currently generating about 0.01 per unit of volatility. If you would invest 701.00 in Symphony Floating Rate on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Symphony Floating Rate or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bloom Select Income vs. Symphony Floating Rate
Performance |
| Timeline |
| Bloom Select Income |
| Symphony Floating Rate |
Bloom Select and Symphony Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and Symphony Floating
The main advantage of trading using opposite Bloom Select and Symphony Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, Symphony Floating 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 Symphony Floating will offset losses from the drop in Symphony Floating's long position.| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
| Symphony Floating vs. Blue Ribbon Income | Symphony Floating vs. Canadian High Income | Symphony Floating vs. MINT Income Fund | Symphony Floating vs. Brompton Lifeco Split |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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