Correlation Between Danimer Scientific and Synthomer Plc

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

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

Diversification Opportunities for Danimer Scientific and Synthomer Plc

0.0

Correlation Coefficient

Danimer Scientific  Synthomer Plc

Pay attention - limited upside

The 3 months correlation between Danimer and Synthomer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Danimer Scientific and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and Danimer Scientific 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 Danimer Scientific are associated (or correlated) with Synthomer Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synthomer plc has no effect on the direction of Danimer Scientific i.e., Danimer Scientific and Synthomer Plc go up and down completely randomly.

Pair Corralation between Danimer Scientific and Synthomer Plc

If you would invest  377.00  in Synthomer plc on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Synthomer plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Danimer Scientific  vs.  Synthomer plc

Danimer Scientific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Danimer Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Synthomer plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Synthomer plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Synthomer Plc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Danimer Scientific and Synthomer Plc

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

The idea behind Danimer Scientific and Synthomer plc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.