Correlation Between Symphony Environmental and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and SilverCrest Metals 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 SilverCrest Metals 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 SilverCrest Metals, you can compare the effects of market volatilities on Symphony Environmental and SilverCrest Metals 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 SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and SilverCrest Metals.
Diversification Opportunities for Symphony Environmental and SilverCrest Metals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symphony and SilverCrest is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest Metals 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 SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and SilverCrest Metals go up and down completely randomly.
Pair Corralation between Symphony Environmental and SilverCrest Metals
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the SilverCrest Metals. But the stock apears to be less risky and, when comparing its historical volatility, Symphony Environmental Technologies is 2.37 times less risky than SilverCrest Metals. The stock trades about -0.11 of its potential returns per unit of risk. The SilverCrest Metals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,439 in SilverCrest Metals on September 13, 2024 and sell it today you would earn a total of 185.00 from holding SilverCrest Metals or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.53% |
| Values | Daily Returns |
Symphony Environmental Technol vs. SilverCrest Metals
Performance |
| Timeline |
| Symphony Environmental |
| SilverCrest Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Symphony Environmental and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and SilverCrest Metals
The main advantage of trading using opposite Symphony Environmental and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, SilverCrest Metals 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 SilverCrest Metals will offset losses from the drop in SilverCrest Metals' 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 |
| SilverCrest Metals vs. TechnipFMC PLC | SilverCrest Metals vs. Playtech Plc | SilverCrest Metals vs. Symphony Environmental Technologies | SilverCrest Metals vs. Raytheon Technologies Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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