Correlation Between Bloomsbury Publishing and Synthomer Plc
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing and Synthomer Plc 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 Bloomsbury Publishing and Synthomer Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and Synthomer plc, you can compare the effects of market volatilities on Bloomsbury Publishing and Synthomer Plc 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 Bloomsbury Publishing with a short position of Synthomer Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Synthomer Plc.
Diversification Opportunities for Bloomsbury Publishing and Synthomer Plc
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bloomsbury and Synthomer is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and Bloomsbury Publishing 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 Bloomsbury Publishing Plc are associated (or correlated) with Synthomer Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synthomer plc has no effect on the direction of Bloomsbury Publishing i.e., Bloomsbury Publishing and Synthomer Plc go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and Synthomer Plc
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 0.51 times more return on investment than Synthomer Plc. However, Bloomsbury Publishing Plc is 1.96 times less risky than Synthomer Plc. It trades about -0.35 of its potential returns per unit of risk. Synthomer plc is currently generating about -0.33 per unit of risk. If you would invest 68,200 in Bloomsbury Publishing Plc on October 15, 2024 and sell it today you would lose (6,200) from holding Bloomsbury Publishing Plc or give up 9.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bloomsbury Publishing Plc vs. Synthomer plc
Performance |
Timeline |
Bloomsbury Publishing Plc |
Synthomer plc |
Bloomsbury Publishing and Synthomer Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bloomsbury Publishing and Synthomer Plc
The main advantage of trading using opposite Bloomsbury Publishing and Synthomer Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing position performs unexpectedly, Synthomer Plc 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 Synthomer Plc will offset losses from the drop in Synthomer Plc's long position.Bloomsbury Publishing vs. Young Cos Brewery | Bloomsbury Publishing vs. Southwest Airlines Co | Bloomsbury Publishing vs. Guild Esports Plc | Bloomsbury Publishing vs. United Airlines Holdings |
Synthomer Plc vs. Metals Exploration Plc | Synthomer Plc vs. Jupiter Fund Management | Synthomer Plc vs. Empire Metals Limited | Synthomer Plc vs. One Media iP |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |