Correlation Between Made Tech and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both Made Tech and Symphony Environmental 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 Made Tech and Symphony Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Symphony Environmental Technologies, you can compare the effects of market volatilities on Made Tech and Symphony Environmental 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 Made Tech with a short position of Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Symphony Environmental.
Diversification Opportunities for Made Tech and Symphony Environmental
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Made and Symphony is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental and Made Tech 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 Made Tech Group are associated (or correlated) with Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Made Tech i.e., Made Tech and Symphony Environmental go up and down completely randomly.
Pair Corralation between Made Tech and Symphony Environmental
Assuming the 90 days trading horizon Made Tech Group is expected to generate 0.82 times more return on investment than Symphony Environmental. However, Made Tech Group is 1.22 times less risky than Symphony Environmental. It trades about 0.08 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about 0.02 per unit of risk. If you would invest 1,100 in Made Tech Group on September 14, 2024 and sell it today you would earn a total of 1,150 from holding Made Tech Group or generate 104.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Made Tech Group vs. Symphony Environmental Technol
Performance |
| Timeline |
| Made Tech Group |
| Symphony Environmental |
Made Tech and Symphony Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and Symphony Environmental
The main advantage of trading using opposite Made Tech and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech position performs unexpectedly, Symphony Environmental 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 Environmental will offset losses from the drop in Symphony Environmental's long position.| Made Tech vs. Samsung Electronics Co | Made Tech vs. Samsung Electronics Co | Made Tech vs. Hyundai Motor | Made Tech vs. Toyota Motor Corp |
| Symphony Environmental vs. CVS Health Corp | Symphony Environmental vs. PureTech Health plc | Symphony Environmental vs. Planet Fitness Cl | Symphony Environmental vs. Lords Grp Trading |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |