Correlation Between Symphony Environmental and Systemair
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and Systemair 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 Symphony Environmental and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Environmental Technologies and Systemair AB, you can compare the effects of market volatilities on Symphony Environmental and Systemair 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 Symphony Environmental with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Systemair.
Diversification Opportunities for Symphony Environmental and Systemair
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symphony and Systemair is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Symphony Environmental 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 Symphony Environmental Technologies are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Systemair go up and down completely randomly.
Pair Corralation between Symphony Environmental and Systemair
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to generate 0.51 times more return on investment than Systemair. However, Symphony Environmental Technologies is 1.95 times less risky than Systemair. It trades about 0.39 of its potential returns per unit of risk. Systemair AB is currently generating about -0.06 per unit of risk. If you would invest 290.00 in Symphony Environmental Technologies on November 1, 2024 and sell it today you would earn a total of 35.00 from holding Symphony Environmental Technologies or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Systemair AB
Performance |
| Timeline |
| Symphony Environmental |
| Systemair AB |
Symphony Environmental and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Systemair
The main advantage of trading using opposite Symphony Environmental and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Symphony Environmental vs. Albion Technology General | Symphony Environmental vs. Sabien Technology Group | Symphony Environmental vs. Check Point Software | Symphony Environmental vs. Wizz Air Holdings |
| Systemair vs. Dalata Hotel Group | Systemair vs. Symphony Environmental Technologies | Systemair vs. Playtech Plc | Systemair vs. Take Two Interactive Software |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |