Correlation Between Symphony Environmental and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and DFS Furniture 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 DFS Furniture 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 DFS Furniture PLC, you can compare the effects of market volatilities on Symphony Environmental and DFS Furniture 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 DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and DFS Furniture.
Diversification Opportunities for Symphony Environmental and DFS Furniture
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symphony and DFS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture PLC 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 DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and DFS Furniture go up and down completely randomly.
Pair Corralation between Symphony Environmental and DFS Furniture
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the DFS Furniture. In addition to that, Symphony Environmental is 2.41 times more volatile than DFS Furniture PLC. It trades about -0.03 of its total potential returns per unit of risk. DFS Furniture PLC is currently generating about 0.01 per unit of volatility. If you would invest 15,320 in DFS Furniture PLC on September 26, 2024 and sell it today you would lose (920.00) from holding DFS Furniture PLC or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. DFS Furniture PLC
Performance |
| Timeline |
| Symphony Environmental |
| DFS Furniture PLC |
Symphony Environmental and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and DFS Furniture
The main advantage of trading using opposite Symphony Environmental and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's long position.| Symphony Environmental vs. Givaudan SA | Symphony Environmental vs. Antofagasta PLC | Symphony Environmental vs. Ferrexpo PLC | Symphony Environmental vs. Atalaya Mining |
| DFS Furniture vs. UNIQA Insurance Group | DFS Furniture vs. Ameriprise Financial | DFS Furniture vs. Symphony Environmental Technologies | DFS Furniture vs. Cembra Money Bank |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |