Correlation Between Symphony Environmental and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and Jyske Bank 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 Jyske Bank 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 Jyske Bank AS, you can compare the effects of market volatilities on Symphony Environmental and Jyske Bank 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Jyske Bank.
Diversification Opportunities for Symphony Environmental and Jyske Bank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Symphony and Jyske is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Jyske Bank go up and down completely randomly.
Pair Corralation between Symphony Environmental and Jyske Bank
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to generate 4.46 times more return on investment than Jyske Bank. However, Symphony Environmental is 4.46 times more volatile than Jyske Bank AS. It trades about 0.01 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.03 per unit of risk. If you would invest 450.00 in Symphony Environmental Technologies on September 14, 2024 and sell it today you would lose (135.00) from holding Symphony Environmental Technologies or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Jyske Bank AS
Performance |
| Timeline |
| Symphony Environmental |
| Jyske Bank AS |
Symphony Environmental and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Jyske Bank
The main advantage of trading using opposite Symphony Environmental and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Symphony Environmental vs. CVS Health Corp | Symphony Environmental vs. PureTech Health plc | Symphony Environmental vs. Planet Fitness Cl | Symphony Environmental vs. Lords Grp Trading |
| Jyske Bank vs. Impax Environmental Markets | Jyske Bank vs. Symphony Environmental Technologies | Jyske Bank vs. Hansa Investment | Jyske Bank vs. Intuitive Investments Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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