Correlation Between Karsten SA and Synopsys,

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

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

Diversification Opportunities for Karsten SA and Synopsys,

-0.8

Correlation Coefficient

Karsten SA  Synopsys,

Pay attention - limited upside

The 3 months correlation between Karsten and Synopsys, is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Karsten SA and Synopsys, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopsys, and Karsten SA 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 Karsten SA are associated (or correlated) with Synopsys,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopsys, has no effect on the direction of Karsten SA i.e., Karsten SA and Synopsys, go up and down completely randomly.

Pair Corralation between Karsten SA and Synopsys,

Assuming the 90 days trading horizon Karsten SA is expected to generate 2.28 times more return on investment than Synopsys,. However, Karsten SA is 2.28 times more volatile than Synopsys,. It trades about 0.17 of its potential returns per unit of risk. Synopsys, is currently generating about -0.13 per unit of risk. If you would invest  2,189  in Karsten SA on December 30, 2024 and sell it today you would earn a total of  1,220  from holding Karsten SA or generate 55.73% return on investment over 90 days.

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

Karsten SA  vs.  Synopsys,

Karsten SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Karsten SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Karsten SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Synopsys,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Synopsys, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Karsten SA and Synopsys,

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

The idea behind Karsten SA and Synopsys, 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.