Correlation Between Symrise Ag and Safran SA
Can any of the company-specific risk be diversified away by investing in both Symrise Ag and Safran SA 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 Symrise Ag and Safran SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symrise Ag PK and Safran SA, you can compare the effects of market volatilities on Symrise Ag and Safran SA 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 Symrise Ag with a short position of Safran SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symrise Ag and Safran SA.
Diversification Opportunities for Symrise Ag and Safran SA
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symrise and Safran is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Symrise Ag PK and Safran SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safran SA and Symrise Ag 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 Symrise Ag PK are associated (or correlated) with Safran SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safran SA has no effect on the direction of Symrise Ag i.e., Symrise Ag and Safran SA go up and down completely randomly.
Pair Corralation between Symrise Ag and Safran SA
Assuming the 90 days horizon Symrise Ag PK is expected to under-perform the Safran SA. But the pink sheet apears to be less risky and, when comparing its historical volatility, Symrise Ag PK is 1.16 times less risky than Safran SA. The pink sheet trades about -0.31 of its potential returns per unit of risk. The Safran SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,682 in Safran SA on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Safran SA or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symrise Ag PK vs. Safran SA
Performance |
| Timeline |
| Symrise Ag PK |
| Safran SA |
Symrise Ag and Safran SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symrise Ag and Safran SA
The main advantage of trading using opposite Symrise Ag and Safran SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symrise Ag position performs unexpectedly, Safran SA 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 Safran SA will offset losses from the drop in Safran SA's long position.| Symrise Ag vs. Sherwin Williams Co | Symrise Ag vs. Air Liquide SA | Symrise Ag vs. LAir Liquide SA | Symrise Ag vs. Air Products and |
| Safran SA vs. Airbus Group NV | Safran SA vs. Moog Inc | Safran SA vs. BAE Systems PLC | Safran SA vs. Airbus Group SE |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |