Correlation Between Chrysalis Investments and Symphony Environmental

Can any of the company-specific risk be diversified away by investing in both Chrysalis Investments and Symphony Environmental 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 Chrysalis Investments and Symphony Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chrysalis Investments and Symphony Environmental Technologies, you can compare the effects of market volatilities on Chrysalis Investments and Symphony Environmental 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 Chrysalis Investments with a short position of Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chrysalis Investments and Symphony Environmental.

Diversification Opportunities for Chrysalis Investments and Symphony Environmental

-0.31

Correlation Coefficient

Chrysalis Investments  Symphony Environmental

Very good diversification

The 3 months correlation between Chrysalis and Symphony is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chrysalis Investments and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental and Chrysalis Investments 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 Chrysalis Investments are associated (or correlated) with Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Chrysalis Investments i.e., Chrysalis Investments and Symphony Environmental go up and down completely randomly.

Pair Corralation between Chrysalis Investments and Symphony Environmental

Assuming the 90 days trading horizon Chrysalis Investments is expected to under-perform the Symphony Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Chrysalis Investments is 1.51 times less risky than Symphony Environmental. The stock trades about -0.09 of its potential returns per unit of risk. The Symphony Environmental Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  290.00  in Symphony Environmental Technologies on December 25, 2024 and sell it today you would earn a total of  15.00  from holding Symphony Environmental Technologies or generate 5.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Chrysalis Investments  vs.  Symphony Environmental Technol

Chrysalis Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chrysalis Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Symphony Environmental

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Symphony Environmental Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Symphony Environmental may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Chrysalis Investments and Symphony Environmental

The main advantage of trading using opposite Chrysalis Investments and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chrysalis Investments position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.

The idea behind Chrysalis Investments and Symphony Environmental Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.