Correlation Between Polar Capital and Synthomer Plc
Can any of the company-specific risk be diversified away by investing in both Polar Capital 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 Polar Capital and Synthomer Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Synthomer plc, you can compare the effects of market volatilities on Polar Capital 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 Polar Capital with a short position of Synthomer Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Synthomer Plc.
Diversification Opportunities for Polar Capital and Synthomer Plc
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polar and Synthomer is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and Polar Capital 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 Polar Capital Technology 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 Polar Capital i.e., Polar Capital and Synthomer Plc go up and down completely randomly.
Pair Corralation between Polar Capital and Synthomer Plc
Assuming the 90 days trading horizon Polar Capital Technology is expected to generate 0.35 times more return on investment than Synthomer Plc. However, Polar Capital Technology is 2.84 times less risky than Synthomer Plc. It trades about 0.09 of its potential returns per unit of risk. Synthomer plc is currently generating about -0.07 per unit of risk. If you would invest 18,740 in Polar Capital Technology on September 3, 2024 and sell it today you would earn a total of 14,860 from holding Polar Capital Technology or generate 79.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Synthomer plc
Performance |
| Timeline |
| Polar Capital Technology |
| Synthomer plc |
Polar Capital and Synthomer Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Synthomer Plc
The main advantage of trading using opposite Polar Capital and Synthomer Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital 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.| Polar Capital vs. Finnair Oyj | Polar Capital vs. Taylor Maritime Investments | Polar Capital vs. Aeorema Communications Plc | Polar Capital vs. Norwegian Air Shuttle |
| Synthomer Plc vs. Target Healthcare REIT | Synthomer Plc vs. Batm Advanced Communications | Synthomer Plc vs. Charter Communications Cl | Synthomer Plc vs. Zoom Video Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |