Correlation Between Symphony Environmental and Erste Group
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and Erste Group 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 Erste Group 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 Erste Group Bank, you can compare the effects of market volatilities on Symphony Environmental and Erste Group 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 Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Erste Group.
Diversification Opportunities for Symphony Environmental and Erste Group
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symphony and Erste is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank 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 Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Erste Group go up and down completely randomly.
Pair Corralation between Symphony Environmental and Erste Group
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to generate 1.58 times more return on investment than Erste Group. However, Symphony Environmental is 1.58 times more volatile than Erste Group Bank. It trades about 0.41 of its potential returns per unit of risk. Erste Group Bank is currently generating about 0.14 per unit of risk. If you would invest 290.00 in Symphony Environmental Technologies on October 16, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Erste Group Bank
Performance |
| Timeline |
| Symphony Environmental |
| Erste Group Bank |
Symphony Environmental and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Erste Group
The main advantage of trading using opposite Symphony Environmental and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| Symphony Environmental vs. Hollywood Bowl Group | Symphony Environmental vs. LBG Media PLC | Symphony Environmental vs. Host Hotels Resorts | Symphony Environmental vs. Ubisoft Entertainment |
| Erste Group vs. Iron Mountain | Erste Group vs. Symphony Environmental Technologies | Erste Group vs. Baker Steel Resources | Erste Group vs. Melia Hotels |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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