Correlation Between Symphony Environmental and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental and Sabien Technology 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 Sabien Technology 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 Sabien Technology Group, you can compare the effects of market volatilities on Symphony Environmental and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Sabien Technology.
Diversification Opportunities for Symphony Environmental and Sabien Technology
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symphony and Sabien is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Sabien Technology go up and down completely randomly.
Pair Corralation between Symphony Environmental and Sabien Technology
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to generate 0.58 times more return on investment than Sabien Technology. However, Symphony Environmental Technologies is 1.73 times less risky than Sabien Technology. It trades about 0.41 of its potential returns per unit of risk. Sabien Technology Group is currently generating about -0.28 per unit of risk. If you would invest 290.00 in Symphony Environmental Technologies on October 26, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Sabien Technology Group
Performance |
| Timeline |
| Symphony Environmental |
| Sabien Technology |
Symphony Environmental and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Sabien Technology
The main advantage of trading using opposite Symphony Environmental and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Symphony Environmental vs. Givaudan SA | Symphony Environmental vs. Antofagasta PLC | Symphony Environmental vs. Ferrexpo PLC | Symphony Environmental vs. Atalaya Mining |
| Sabien Technology vs. DXC Technology Co | Sabien Technology vs. Symphony Environmental Technologies | Sabien Technology vs. Automatic Data Processing | Sabien Technology vs. Ashtead Technology Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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