Correlation Between Symphony Environmental and State Street
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and State Street 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 State Street 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 State Street Corp, you can compare the effects of market volatilities on Symphony Environmental and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and State Street.
Diversification Opportunities for Symphony Environmental and State Street
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symphony and State is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and State Street Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Corp 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Corp has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and State Street go up and down completely randomly.
Pair Corralation between Symphony Environmental and State Street
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the State Street. In addition to that, Symphony Environmental is 1.91 times more volatile than State Street Corp. It trades about -0.11 of its total potential returns per unit of risk. State Street Corp is currently generating about 0.17 per unit of volatility. If you would invest 9,060 in State Street Corp on September 13, 2024 and sell it today you would earn a total of 837.00 from holding State Street Corp or generate 9.24% 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. State Street Corp
Performance |
| Timeline |
| Symphony Environmental |
| State Street Corp |
Symphony Environmental and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and State Street
The main advantage of trading using opposite Symphony Environmental and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Symphony Environmental vs. Atalaya Mining | Symphony Environmental vs. Central Asia Metals | Symphony Environmental vs. Metals Exploration Plc | Symphony Environmental vs. SANTANDER UK 10 |
| State Street vs. Aeorema Communications Plc | State Street vs. Spirent Communications plc | State Street vs. Infrastrutture Wireless Italiane | State Street vs. MTI Wireless Edge |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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