Correlation Between Symphony Environmental and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Symphony Environmental and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Centaur Media.
Diversification Opportunities for Symphony Environmental and Centaur Media
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symphony and Centaur is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Centaur Media go up and down completely randomly.
Pair Corralation between Symphony Environmental and Centaur Media
Assuming the 90 days trading horizon Symphony Environmental is expected to generate 1.15 times less return on investment than Centaur Media. But when comparing it to its historical volatility, Symphony Environmental Technologies is 2.39 times less risky than Centaur Media. It trades about 0.41 of its potential returns per unit of risk. Centaur Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Centaur Media on October 24, 2024 and sell it today you would earn a total of 300.00 from holding Centaur Media or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Centaur Media
Performance |
| Timeline |
| Symphony Environmental |
| Centaur Media |
Symphony Environmental and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Centaur Media
The main advantage of trading using opposite Symphony Environmental and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Symphony Environmental vs. Virgin Wines UK | Symphony Environmental vs. Jupiter Fund Management | Symphony Environmental vs. mobilezone holding AG | Symphony Environmental vs. Zegona Communications Plc |
| Centaur Media vs. Atresmedia | Centaur Media vs. Zinc Media Group | Centaur Media vs. Prosiebensat 1 Media | Centaur Media vs. Metals Exploration Plc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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